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

Author: Alexander S. Blume

Compiled by: AididiaoJP, Foresight News

At the end of last year, I predicted that 2025 would become the “Transformative Year of Realization” for digital assets, as significant progress had been made in both retail and institutional markets moving toward mainstream applications. This prediction has been validated in several ways: increased institutional allocations, more real-world assets tokenized, and the continuous development of crypto-friendly regulation and market infrastructure.

We also witnessed the rapid rise of digital asset treasury companies, though their path has not been smooth. Since then, as Bitcoin and Ether have become more integrated into traditional finance and gained broader adoption, their prices have increased by approximately 15%.

Digital assets have entered the mainstream, and this is undeniable. Looking ahead to 2026, we will see the market continue to mature and evolve, with exploratory efforts 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 Businesses Will Gain Legitimacy

This year, digital asset treasury companies experienced rapid expansion, but not without growing pains. From craft beverages to sunscreen brands, various enterprises have rebranded themselves as crypto buyers and holders, bringing challenges such as investor skepticism, regulatory resistance, mismanagement, and low valuations.

Amid the wave of emerging companies, some DATs have begun holding assets we might call “altcoins,” but most of these projects lack historical performance or investment value and are merely speculative tools. However, in the next year, many issues within the DAT market and its operational strategies will be addressed, and entities truly operating based on Bitcoin standards will find their footing in the public markets.

Many DATs, even the largest ones, will see their stock prices start aligning more closely with the value of their underlying assets. Management will face pressure to create more effective shareholder value. It is well known that a company merely holding large amounts of Bitcoin without active management—while maintaining expensive expenses like private jets and high management fees—is not beneficial for shareholders.

2. Stablecoins Will Be Ubiquitous

2026 will be the year when stablecoins become widely adopted. USDC and USDT are expected to be used not only for trading and settlement but also to penetrate traditional financial transactions and products more deeply. Stablecoins may appear not only on cryptocurrency exchanges but also within payment processors, corporate treasury systems, and even cross-border settlement networks. For businesses, their appeal lies in enabling instant settlement without relying on slow or costly traditional banking channels.

However, similar to the DAT sector, the stablecoin market may also become oversaturated: 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 phased out or acquired, with the market consolidating under more well-known stablecoin issuers, retailers, payment channels, and exchanges/wallets.

3. We Will Say Goodbye to the “Four-Year Cycle” Theory

I now officially predict that the “Four-Year Cycle” theory of Bitcoin will be formally ended in 2026. The current market is broader and has higher institutional participation, no longer operating in a vacuum. Instead, a new market structure and sustained buying pressure will drive Bitcoin toward a steady, gradual growth trajectory.

This will mean reduced overall volatility, and its function as a store of value will become more stable, likely attracting 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 generally fewer so-called “cycles.”

4. US Investors Will Gain Access to Offshore Liquidity Markets

As digital assets become more mainstream and supported by favorable government policies, regulatory changes and market structure adjustments will allow US investors to access overseas cryptocurrency liquidity. This may not be an abrupt shift, but over time, we will see more approved affiliated institutions, improved custody solutions, and offshore platforms that meet US compliance standards.

Some stablecoin projects may accelerate this trend. USD-backed stablecoins are already capable of cross-border movement in ways traditional banking channels cannot achieve. As leading issuers expand into regulated offshore markets, they are poised to become bridges connecting US capital with global liquidity pools. In short, stablecoins may ultimately solve a long-standing regulatory challenge: connecting US investors with international digital asset markets in a clear, traceable manner.

This is crucial because offshore liquidity plays a key role in price discovery within the digital asset markets. The next phase of market maturity will involve standardizing cross-border market operations.

5. Products Will Become More Complex and Sophisticated

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

We are likely to see structured products using Bitcoin as collateral, as well as strategies designed to generate real returns from Bitcoin exposure (rather than merely betting on price movements). ETFs will also go beyond simple price tracking, offering yield through staking or options strategies, although fully diversified total return products remain limited. Derivatives will become more complex and better integrated into standard risk frameworks. By 2026, Bitcoin’s role will likely shift from primarily a speculative tool to a core component of financial infrastructure.