Look, we need to talk about Bitcoin. After two years of absolutely bonkers 100%+ returns, 2025 was… well, let’s just say it was the crypto equivalent of ordering a fancy cocktail and getting flat soda water. Down 6% for the year? Ouch.
But before you start using your hardware wallet as a very expensive paperweight, the folks at K33 Research have some thoughts on why 2026 might be Bitcoin’s redemption arc. And honestly? Their reasoning isn’t half bad.
First up: Bitcoin is basically on sale right now. It’s trading at “pre-Trump levels” (remember when everyone thought he’d be crypto’s savior?), down 44% from its peak of $126,000. That’s like finding your favorite expensive jeans marked down 44% – sometimes the universe is just trying to tell you something.
The Fed is probably going to keep cutting rates. Markets are betting on at least two rate cuts in 2026, which is fancy talk for “money is going to be cheaper to borrow.” When that happens, investors typically get a bit more adventurous with their cash. Think of it as financial FOMO – when safe investments pay peanuts, people start eyeing the shiny, volatile stuff.
Trump actually seems to mean it this time. Say what you want about the guy, but he’s been signing executive orders left and right to boost crypto. He even launched his own meme coin (because of course he did). When the President of the United States is literally shilling crypto, that’s… well, it’s something.
The government is hoarding Bitcoin like it’s toilet paper in 2020. The US is sitting on about 233,736 bitcoins worth roughly $20 billion. Instead of selling them off like they used to, they’re just… keeping them. It’s like removing supply from the market, which Economics 101 tells us should be good for prices.
Your 401(k) might get crypto access. Trump signed an order asking regulators to review retirement account rules. If just 1% of 401(k) money went into Bitcoin, we’re talking about $87 billion. That’s not pocket change – that’s “buy a small country” money.
Finally, the CLARITY Act is coming. This is the big crypto legislation that would basically give banks and crypto firms a rulebook for playing nice together. The House already passed it, and the Senate is expected to vote early this year. When traditional banks feel comfortable diving deeper into crypto, things tend to get interesting.
Now, does this mean you should YOLO your life savings into Bitcoin? Absolutely not. This is still the asset that can swing 20% on a Tuesday because someone sneezed wrong on Twitter. But if you’re already in the crypto game or thinking about dipping your toes in, 2026 might actually be the year Bitcoin stops being the financial equivalent of that friend who’s always “about to get their life together.”
Just remember: past performance doesn’t guarantee future results, but sometimes the stars do align. And right now, they’re looking pretty Bitcoin-friendly.