2025 started with a bullish tone for the crypto market. Bitcoin (BTC), Ethereum (ETH), XRP, BNB, etc., have all hit new all-time highs this year. However, things took a turn for the worse in the latter half of the year. The crypto market began a descent in October and has struggled to gain momentum over the last few months. In this article, let’s look at two bullish catalysts and two bearish risks the cryptocurrency market may face in 2026.
2 Bullish Catalysts And 2 Bearish Risks For The Cryptocurrency Market in 2026
According to Grayscale and Bernstein, Bitcoin (BTC) may be following a 5-year cycle and not a 4-year cycle. What this means is that BTC could climb to a new all-time high in 2026, 5 years after its 2021 peak. BTC hitting a new all-time high could trigger a market-wide rally for the cryptocurrency sector in 2026.
Another bullish factor that could trigger a cryptocurrency market rally in 2026 is more pro-crypto legislation. The crypto sector in the US has seen incredible growth over the last year. The GENIUS and CLARITY acts brough much needed clarity to the crypto market. More legislation is expected to be passed into law next year.
However, there are bearish risks that could present substantial challenges to the cryptocurrency market next year. Firstly, macroeconomic uncertainties seem to show no signs of cooling down. The current market scenario is likely due to inflation risks, slow economic growth, and high jobs figures. The trend may continue into 2026 as well, which may lead the cryptocurrency market to remain on its current trajectory.
Also Read: Crypto Ranks Last in 2025 as Metals and Equities Surge
Another bearish risk in 2026 could arise from decreasing spot trading volumes and low demand for cryptocurrencies. The current market scenario indicates that market participants are opting for risk-averse assets, such as silver and gold. Both silver and gold have hit new all-time highs over the last few weeks. The risk-off strategy could continue over the coming months, and the cryptocurrency market could suffer as a consequence.