Bitcoin (BTC) Price Prediction: Grayscale Predicts New All-Time High in First Half of 2026

TLDR

• Grayscale predicts Bitcoin will reach a new all-time high within the first six months of 2026
• The asset manager cites increased institutional demand and improved US regulatory clarity as key drivers
• Bitcoin recently dropped below $86,000, down roughly 30% from its October record high of over $126,000
• Grayscale expects Congress to pass bipartisan crypto market structure legislation in 2026
• The firm believes the four-year cycle theory for crypto markets is coming to an end

Grayscale has issued a bullish prediction for Bitcoin, expecting the cryptocurrency to hit a new all-time high in the first half of 2026. The forecast comes as part of the asset manager’s 2026 outlook report published on Monday.

The firm points to two main factors driving this expected surge. First is growing institutional demand for alternative value stores. Second is improved regulatory clarity in the United States.

Grayscale believes Bitcoin’s rise will coincide with the end of the four-year cycle theory. This theory suggests crypto markets follow a recurring four-year pattern. The asset manager expects rising valuations throughout 2026.

Bitcoin currently trades around $85,575 after falling below $86,000 on Monday. The cryptocurrency has dropped approximately 30% from its record high of more than $126,000 reached in early October.

Regulatory Environment Shifting

The regulatory landscape in the US has changed drastically over the past two years. Grayscale highlighted several key developments in its report.

Cases against crypto firms have been dropped. Spot Bitcoin ETFs received approval, opening doors for new products. Congress passed the GENIUS Act on stablecoins in 2025.

Grayscale expects Congress to pass bipartisan crypto market structure legislation in 2026. This legislation would cement blockchain-based finance in US capital markets. It would also help facilitate continued institutional investment.

Market Conditions and Trading Activity

Bitcoin has been trading in a choppy range between $85,000 and $94,000. Bohan Jiang from FalconX noted a continued lack of interest and low volumes across crypto markets.

The cryptocurrency has fallen with other risk assets in recent weeks. However, it hasn’t rebounded when they have. This breaks Bitcoin’s usual upside correlation.

Chris Newhouse from Ergonia said the current decline differs from recent selloffs. It’s being driven by spot and derivatives positioning rather than forced liquidations.

Relatively muted liquidation data suggests over-leveraged positions have already been cleared. This leaves behind a more organic form of selling pressure.

Michael Saylor’s Strategy Inc. continues buying Bitcoin despite the price decline. The company acquired almost $1 billion in Bitcoin for a second consecutive week. Strategy funded these purchases through at-the-market sales of Class A common stock.

Macro Factors Supporting Growth

Grayscale argues that fiat currencies face rising debasement risks. These risks stem from rising public sector debt and potential inflation implications.

The firm states that as long as fiat currency debasement risks keep rising, portfolio demand for Bitcoin and Ether will likely continue to increase.

Other cryptocurrencies also experienced losses on Monday. Ether, Doge and XRP each dropped around 5%. Shares of crypto-related companies slumped as well.

The latest selloff led to liquidations of about $520 million worth of bullish bets across all tokens in the past 24 hours. Bitcoin touched a 2025 low of around $74,400 in April after President Donald Trump’s initial tariff plan affected financial markets worldwide.

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