High Expectations for Crypto Performance in 2026

The crypto landscape is buzzing with anticipation for 2026, as expectations soar fueled by an increasing demand for alternative stores of value and growing regulatory clarity.

According to Zach Pandl, the Head of Research at Grayscale, a more favorable regulatory environment is pivotal for the strengthening of the cryptocurrency sector. As fiat currencies continue to weaken, this will likely lead to a surge in demand for cryptocurrencies. These synergistic factors may propel Bitcoin’s price to unprecedented heights, achieving new all-time records.

In light of these trends, it’s essential for investors and stakeholders to stay informed and compliant. This is where tools like AI legalese decoder can play a critical role, helping individuals and firms to navigate the complex legalities of crypto investments. By simplifying legal documents and ensuring comprehension, AI legalese decoder can assist you in making well-informed decisions in a rapidly evolving market.

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Market Structure Bill: A Catalyst for Token Issuance

Since its inception in 2008, the cryptocurrency arena has witnessed significant advancements, particularly in the past year. Important milestones have been reached, such as the approval of cryptocurrency exchange-traded funds (ETFs) and the enactment of the GENIUS Act, effectively bridging the divide between digital assets and traditional finance.

However, as Pandl notes, considerable work remains to be done. The next critical step involves passing a bipartisan market structure bill. Following setbacks caused by a government shutdown and partisan disputes in 2025, Pandl is optimistic that this important legislation will gain Senate approval early in the new year.

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

He emphasized that a bipartisan bill would enable organizations, ranging from innovative startups to Fortune 500 powerhouses, to issue tokens as a standard part of their capital structures, in alignment with traditional financial instruments.

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Pandl further highlighted that broader macroeconomic factors will likely create a positive ripple effect on Bitcoin’s pricing dynamics.

Conditions Align for a Bitcoin All-Time High

While Bitcoin’s performance lagged during the latter half of 2025, Pandl remains hopeful that the leading digital asset will experience a significant turnaround this year.

According to Grayscale’s 2026 digital asset outlook, Bitcoin is expected to reach new all-time highs, particularly in the first half of the year. Pandl identifies several contributing factors that could influence this optimistic outcome.

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“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.

This encouraging outlook is further bolstered by the anticipated passage of the market structure bill, which will contribute to a favorable price forecast. Broader adoption is expected to drive the expedited rollout of ETFs, providing investors with access to an increasingly diverse array of crypto assets.

As the cryptocurrency market evolves and matures, Pandl asserts that certain outdated narratives are likely to fade into obscurity, making way for forward-thinking value propositions.

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The End of DATs? A Shift in Focus

While digital asset treasuries (DATs) thrived in 2025, Pandl does not predict this momentum will carry into 2026. He controversially labels them a “red herring,” primarily due to their infrequent trading and accumulation models.

According to Pandl, these entities typically buy and sell rarely, often trading close to their fair market value, which diminishes their potential to dramatically impact valuations.

“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,” he explained.

As a result, the market’s focus is likely to pivot toward value drivers such as broader access, improved usability, and innovative products that effectively translate increasing demand into tangible market impact.