Four-Year Cycle Conclusion: Five Disruptive Trends in Cryptocurrency for 2026

Written by: Alexander S. Blume

Compiled by: AididiaoJP, Foresight News

At the end of last year, I predicted that 2025 would be the "transformative implementation year" for digital assets, as significant progress had been made towards mainstream applications in both retail and institutional markets. This prediction has been validated in several ways: increased institutional allocation, more real-world assets being tokenized, and the continuous development of crypto-friendly regulations and market infrastructure.

We have also witnessed the rapid rise of digital asset treasury companies, but the path has not been smooth. Since then, as Bitcoin and Ethereum have become more deeply integrated into the traditional financial system and gained wider application, their prices have risen by about 15%.

Digital assets have undoubtedly entered the mainstream. Looking ahead to 2026, we will see the market continue to mature and evolve, with exploratory attempts giving way to more sustainable growth. Based on recent data and emerging trends, here are my five predictions for the cryptocurrency space in the coming year.

1. DATs 2.0: Bitcoin Financial Services Will Gain Legitimacy

Digital asset treasury companies have experienced rapid expansion this year, but it has also come with growing pains. From flavored beverages to sunscreen brands, various businesses have rebranded themselves as buyers and holders of cryptocurrency, leading to investor skepticism, regulatory pushback, mismanagement, and depressed valuations, all of which have troubled this model.

Amid the wave of emerging companies, some DATs have begun to hold what we might call "altcoin" assets, but in reality, most of these projects lack historical performance or investment value and are merely speculative tools. However, in the coming year, many of the issues within the DAT market and its operational strategies will be resolved, and those entities truly operating based on Bitcoin standards will find their place in the public market.

Many DATs, even the largest ones, will see their stock prices begin to align more closely with the value of their underlying assets. Management will face pressure to create value for shareholders more effectively. It is well known that a company holding a large amount of Bitcoin but doing nothing (while maintaining significant expenses like private jets and high management fees) is not beneficial for shareholders.

2. Stablecoins Will Be Ubiquitous

2026 will be the year of widespread adoption of stablecoins. It is expected that USDC and USDT will not only be used for trading and settlement but will also penetrate traditional financial transactions and products more deeply. Stablecoins may appear not only on cryptocurrency exchanges but also in payment processors, corporate cash management systems, and even cross-border settlement systems. For businesses, their appeal lies in enabling instant settlement without relying on slow or costly traditional banking channels.

However, similar to the DAT space, the stablecoin market may also experience oversaturation: too many speculative stablecoin projects launching, too many consumer-facing payment platforms and wallets emerging, and too many blockchains claiming to "support" stablecoins. By the end of this year, we expect many speculative projects to be eliminated or acquired by the market, with consolidation occurring under more well-known stablecoin issuers, retailers, payment channels, and exchanges/wallets.

3. We Will Bid Farewell to the "Four-Year Cycle" Theory

I now officially predict that the "four-year cycle" theory of Bitcoin will be formally declared over in 2026. Today's market is broader and has higher institutional participation, no longer operating in a vacuum. Instead, a new market structure and sustained buying power will drive Bitcoin towards a continuous, gradual growth trajectory.

This means overall volatility will decrease, and its function as a store of value will become more stable, which should attract more traditional investors and market participants globally. Bitcoin will evolve from a trading tool into a new asset class, accompanied by more stable capital flows, longer holding periods, and overall fewer so-called "cycles."

4. U.S. Investors Will Be Allowed to Access Offshore Liquidity Markets

As digital assets become more widely mainstream, coupled with favorable government policy support, regulatory changes and market structure will allow U.S. investors to access overseas cryptocurrency liquidity. This may not be a sudden shift, but over time, we will see more approved affiliated institutions, improved custody solutions, and offshore platforms that can meet U.S. compliance standards.

Certain stablecoin projects may also accelerate this trend. Dollar-backed stablecoins have already been able to flow cross-border in ways that traditional banking channels cannot achieve. As major issuers enter regulated offshore markets, they are expected to become a bridge connecting U.S. capital with global liquidity pools. In short, stablecoins may ultimately solve the problem that regulators have struggled to address: connecting U.S. investors with the international digital asset market in a clear and traceable manner.

This is crucial because offshore liquidity plays a key role in the price discovery process of the digital asset market. The next stage of market maturity will be the standardization of cross-border market operations.

5. Products Will Become More Complex and Refined

In the new year, Bitcoin-related debt and equity products, as well as trading products focused on Bitcoin-denominated returns, will reach new levels of complexity. Investors, including those who have previously shied away from digital assets, will embrace this updated and more sophisticated product suite.

We are likely to see structured products that use Bitcoin as collateral, as well as investment strategies aimed at generating real returns from Bitcoin exposure (rather than merely betting on price fluctuations). ETF products will also begin to go beyond simple price tracking, providing sources of returns through staking or options strategies, although fully diversified total return products remain limited at present. Derivatives will become more complex and better integrated with standard risk frameworks. By 2026, Bitcoin's function is likely to evolve from being primarily a speculative tool to becoming a core component of financial infrastructure.

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