Four Year Cycle Conclusion: Five Disruptive Trends in Crypto Assets for 2026

Original Author: Alexander S. Blume

Original translation: AididiaoJP, Foresight News

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

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

Digital assets have entered the mainstream, and this is beyond doubt. 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.

The digital asset treasury company has experienced rapid expansion this year, but it has also come with growing pains. From flavored spirits to sunscreen brands, various companies are rebranding themselves as buyers and holders of cryptocurrency. This has led to investor skepticism, regulatory pushback, mismanagement, and low valuations, all of which have caused trouble for this model.

Amid the surge of numerous companies emerging, some DATs have also started to hold assets that we might tentatively call “altcoins.” However, in reality, most of these projects lack historical performance or investment value and are merely speculative tools. But in the coming year, many of the key issues in the DAT market and its operational strategies will be resolved, and those entities that genuinely operate based on Bitcoin standards will find their position in the public market.

Many DATs, even the largest ones, will see their stock prices start to align more closely with the value of the underlying assets they hold. Management will face pressure to create value for shareholders more effectively. It is well-known that if a company merely holds a large amount of Bitcoin without taking any action (while maintaining significant expenses such as private jets and high management fees), it is not beneficial for shareholders.

2. Stablecoins will be everywhere

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

However, similar to the DATs field, the stablecoin market may also experience over-saturation: too many speculative stablecoin projects being launched, 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 that many of the more speculative projects will be eliminated or acquired by the market, and the market will consolidate under those 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: the “four-year cycle” theory of Bitcoin will be officially declared over in 2026. Today's market is broader and has higher institutional participation, and it no longer operates in a vacuum. Instead, what will emerge is a new market structure and sustained buying power, driving Bitcoin towards a continuous, gradual growth trajectory.

This means that 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 to adopt it. 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. American investors will be allowed to enter the offshore liquidity market.

As digital assets become more widely mainstream, coupled with supportive government policies, changes in regulations and market structure will allow U.S. investors to access overseas cryptocurrency liquidity. This is not necessarily 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.

Some stablecoin projects may also accelerate this trend. Dollar-backed stablecoins have already been able to flow across borders 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 address the challenge that regulators have consistently failed to resolve: 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 tend to 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 a new level 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 are also beginning to go beyond simple price tracking, providing sources of returns through staking or options strategies, although fully diversified total return products are still limited. Derivatives will become more complex and will better integrate with standard risk frameworks. By 2026, Bitcoin's function is likely to no longer be primarily a speculative tool, but rather become a core component of financial infrastructure.