Although Bitcoin’s performance in 2025 may have left some investors feeling disheartened, Katherine Dowling, the President of Bitcoin Standard Treasury Company, believes that a significant transformation is on the horizon for next year.
According to Dowling, factors such as changes in regulatory policies, monetary expansion, and an influx of institutional investments are set to drive Bitcoin prices much higher by 2026.
Despite recent trends showing risk aversion and price drops within the market, Dowling maintains a positive long-term outlook. She stated, “Even with the current selling pressure we’re witnessing, I remain very optimistic about Bitcoin’s prospects for 2026. We are currently facing a trifecta of favorable conditions: an encouraging regulatory landscape, monetary growth initiatives, and increased institutional participation.”
Dowling forecasts that by the end of 2026, Bitcoin could soar to $150,000—a rise of nearly 70 percent from its present value. Although it has seen over a 25 percent decline since its peak last October—raising concerns about a bear market—she believes that any short-term pressures will be mitigated by underlying structural catalysts.
Firms labeled as “Bitcoin treasuries” provide investors with indirect exposure to cryptocurrencies through their stock holdings while maintaining Bitcoin on their balance sheets. Dowling asserts that this model will continue to significantly influence institutional demand growth.
The bullish outlook presented by Dowling hinges on three critical elements. Firstly, there needs to be clarity in the US regulatory framework. She highlighted that while progress has been made with legislation like the GENIUS Act concerning stablecoins—which marks substantial advancement—the passage of the Clarity Act addressing market structure through Congress is equally essential. Additionally, she noted that recent announcements from the Office of the Comptroller of Currency (OCC) permitting banks to trade crypto assets for clients signal a shift towards more lenient regulations within this sector.
The second element involves returning monetary expansion policies. The Federal Reserve’s third interest rate cut this week alongside its formal cessation of quantitative tightening two weeks ago has enhanced liquidity conditions significantly. Historically low interest rates combined with increased liquidity tend to favor high-risk assets such as Bitcoin. Brian Huang from Glider also emphasized how these macroeconomic shifts create an advantageous environment for both Bitcoin and Ethereum ETFs; he too predicts potential growth reaching $150K by late 2026.
*This should not be considered investment advice.