Expectations for the cryptocurrency market’s performance in 2026 are mounting, fueled by increasing demand for alternative stores of value and anticipated regulatory clarity. Zach Pandl, Head of Research at Grayscale, highlighted that a more favorable regulatory landscape would significantly bolster the crypto sector. Concurrently, the weakening of fiat currencies is expected to drive further demand for cryptocurrencies, particularly Bitcoin, which may see its price soar to new all-time highs as a result.
The evolution of crypto since its inception in 2008, particularly over the past year, has been marked by key developments such as the approval of crypto exchange-traded funds (ETFs) and the passage of the GENIUS Act, which have helped bridge the gap between digital assets and traditional financial systems. Yet, according to Pandl, more work lies ahead. He pointed out that the imminent passage of a bipartisan market structure bill could be a game changer for the industry, enabling businesses ranging from startups to Fortune 500 firms to issue tokens alongside traditional financial instruments.
After delays caused by a government shutdown and partisan strife in 2025, Pandl is optimistic that the legislation will secure approval early in 2026, potentially as soon as January or the first quarter of the year. He conveyed this optimism in a recent CNBC interview, emphasizing the importance of bipartisan support for the crypto sector’s expansion.
Despite Bitcoin’s lackluster performance during the second half of 2025, Pandl is optimistic about a turnaround for the leading digital asset. Grayscale’s 2026 digital asset outlook envisions Bitcoin reaching a new all-time high in the first half of the year, driven by a mix of favorable factors. Pandl noted that the macroeconomic environment is likely to see dollar weakness, Federal Reserve rate cuts, and strength in precious metals like gold and silver, which will also bolster Bitcoin, Ether, and other cryptocurrencies as viable digital stores of value.
Furthermore, the passage of the market structure bill is expected to enhance price forecasts, as broader adoption and faster rollout of ETFs will give investors more access to a diverse array of crypto assets. As the crypto market matures, Pandl also anticipates a shift in focus away from certain trends, particularly the rise of digital asset treasuries (DATs).
While DATs saw a significant uptick in 2025, Pandl doesn’t foresee this trend continuing into 2026. He described them as a “red herring,” critiquing their infrequent buying and selling patterns, which typically result in them trading close to fair value. Although DATs are here to stay, particularly for some investors who prefer accessing crypto through public equity channels, they are unlikely to act as major valuation drivers moving forward. Instead, the emphasis is expected to shift toward value drivers such as broader accessibility, improved usability, and innovative products that can effectively translate demand into tangible market impact.
