American asset management firm Bitwise has released a report stating that Bitcoin is emerging from its current four-year market cycle and is expected to reach a new all-time high in 2026. The report highlights a predicted reduction in price volatility and a weakening correlation with the stock market. Bitwise’s Chief Investment Officer, Matt Hogan, explained that Bitcoin’s four-year halving cycle, which historically triggered sharp price increases followed by declines, has now weakened. The halving process, which halves Bitcoin’s supply, has traditionally influenced price fluctuations. However, its impact along with interest rate volatility has diminished, and significant liquidations in 2025 have lowered market debt levels. Furthermore, Bitwise anticipates increased institutional investment following the approval of spot Bitcoin ETFs in 2024. Major financial firms such as Morgan Stanley, Wells Fargo, and Merrill Lynch are expected to boost their Bitcoin investments, contributing to price stability and growth. The report also notes that Bitcoin’s price volatility has significantly decreased compared to the past decade, making it less volatile than the stock market. This trend is expected to continue through 2026, enhancing Bitcoin’s appeal as a stable investment. Additionally, Bitwise predicts a further weakening of the correlation between Bitcoin and traditional stock markets, allowing Bitcoin to establish a distinct identity and be less affected by global financial crises or stock market uncertainties. Overall, 2026 is projected to offer a favorable environment for Bitcoin investors characterized by price appreciation, reduced volatility, and diminished stock market correlation, creating an ideal investment scenario.
Source: bitcoinmagazine
