Bitwise Forecasts Crypto Boom: Bitcoin, Ethereum, Solana to Hit New Highs by 2026

Bitwise’s analysis begins with a pivotal assertion: Bitcoin is poised to break free from its traditional four-year price cycle. The firm argues that historical drivers—such as the Bitcoin Halving, interest rate fluctuations, and leverage-fueled booms and busts—will diminish in influence. In their place, a wave of institutional capital is expected to redefine the market. Major financial institutions like Citi, Morgan Stanley, Wells Fargo, and Merrill Lynch are projected to significantly increase their allocations to crypto, primarily through spot ETFs and on-chain developments.

This institutional embrace is forecasted to have a profound stabilizing effect. Bitwise notes that Bitcoin has already demonstrated lower volatility than tech giant Nvidia throughout 2025, a trend expected to solidify. The result is a vision of a maturing asset class, less prone to wild swings and more integrated into traditional finance. This foundational shift sets the stage for Bitcoin to achieve new record prices, moving beyond the cyclical patterns that have defined its past.

A cornerstone of Bitwise’s outlook is the overwhelming demand from exchange-traded funds. The firm projects that by 2026, ETFs will acquire more than 100% of the new supply entering the market for Bitcoin, Ethereum, and Solana. Quantifying this, Bitwise estimates new annual supply at roughly 166,000 Bitcoin (worth approximately $15.3 billion), 960,000 Ethereum ($3.0 billion), and 23 million Solana ($3.2 billion). Institutional demand is anticipated to not only absorb this entire supply but exceed it, creating sustained upward price pressure.

This ETF-driven demand is part of a broader narrative of crypto’s financial ascent. The report highlights the staggering outperformance of crypto equities compared to traditional tech stocks. While tech shares have risen 140% over the past three years, the Bitwise Crypto Innovators 30 Index—tracking companies providing crypto infrastructure and services—has skyrocketed 585%. Bitwise believes this momentum will continue into 2026, fueled by potential revenue growth, a wave of mergers and acquisitions, and a more favorable regulatory landscape.

Beyond Bitcoin, Bitwise expresses strong optimism for Ethereum and Solana, contingent on regulatory progress like the passing of the CLARITY Act. The firm identifies the growth of stablecoins and real-world asset tokenization as defining “megatrends,” with both Ethereum and Solana positioned as primary beneficiaries. The stablecoin market, including tokens like USDT and USDC, is currently valued at nearly $300 billion and is predicted to reach $500 billion by the end of 2026.

However, this growth carries geopolitical risk. Bitwise cautions that stablecoins may become scapegoats for currency instability in emerging markets, with one or two countries potentially blaming them for financial troubles—despite the reality that demand for dollar-pegged tokens often arises from local currency weakness. On the regulatory front, the U.S. Securities and Exchange Commission’s (SEC) new listing standards are expected to trigger an “ETF-palooza,” with over 100 new crypto-linked ETFs forecast to launch, providing investors with unprecedented access under a unified framework.

The report concludes with further indicators of mainstream integration: Bitwise predicts that half of Ivy League university endowments will likely invest in cryptocurrencies, and on-chain vault assets under management will double in the coming years. While Bitcoin currently trades 31.8% below its all-time high, Bitwise’s comprehensive 2026 outlook paints a picture of a market transitioning from niche speculation to a cornerstone of global finance, driven by institutional capital, regulatory evolution, and technological innovation.