January 2, 2026

Cryptocurrency analysts are projecting strong performance for digital assets in 2026, fueled by increasing appetite for alternative value stores and clearer regulatory frameworks.

Zach Pandl, Head of Research at Grayscale, suggests that improved regulatory support combined with declining fiat currency strength will create favorable conditions for Bitcoin to surpass its previous record highs.

Market Structure Legislation Could Unlock Token Growth

The cryptocurrency landscape has undergone dramatic transformation since 2008, with particularly rapid advancement over the last twelve months.

Recent achievements including crypto ETF approvals and the GENIUS Act have brought digital assets closer to mainstream finance, though significant challenges remain.

Pandl identifies bipartisan market structure legislation as the next crucial milestone. Following delays from government shutdowns and political disputes in 2025, he anticipates Senate passage early this year.

“It looks like we are on track in January or in Q1,” Pandl said in a CNBC interview. “Even if it doesn’t get done immediately… bipartisan progress is really the key.”

He emphasized that such legislation would empower companies across all sectors—from emerging startups to established corporations—to incorporate token issuance into their financing strategies alongside conventional securities.

Pandl also highlighted that broader economic trends will positively influence Bitcoin’s valuation.

Economic Factors Support Bitcoin Rally

Despite Bitcoin’s sluggish second-half performance in 2025, Pandl expects a reversal of fortunes this year.

Grayscale’s 2026 outlook projects Bitcoin will establish a new peak during the first six months. Multiple factors underpin this forecast.

“I think [2026] will be a year of dollar weakness, Federal Reserve rate cuts, and strength in gold, silver… as well as Bitcoin, Ether, and some other crypto assets as digital stores of value. All of these should benefit from the macroeconomic climate we’re living through,” he told CNBC.

Combined with potential market structure legislation, these conditions paint an optimistic price picture.

Increased mainstream adoption should also accelerate the launch of ETFs offering exposure to diverse crypto assets.

As the sector evolves, Pandl anticipates certain trends will fade.

Digital Asset Treasuries Face Uncertain Future

While digital asset treasuries experienced popularity in 2025, Pandl doesn’t expect this trajectory to continue into the new year, calling them a “red herring.”

He cited their trading patterns as problematic, noting they purchase and sell infrequently while typically hovering near fair value.

“They are not going away, since some investors prefer accessing crypto through public equity vehicles, but they are unlikely to be major drivers of valuations on either the buy side or the sell side,” Pandl explained.

Market attention will likely pivot toward fundamentals including wider accessibility, enhanced user experience, and financial products that more effectively channel demand into price action.