Bitcoin, Ethereum, Solana To Hit All-Time Highs In 2026, Bitwise Predicts

Core Insights - Bitwise anticipates 2026 to be a pivotal year for cryptocurrency, predicting that Bitcoin, Ethereum, and Solana will reach new all-time highs due to institutional influences reshaping the market [1][2] Group 1: Institutional Adoption and Market Dynamics - The traditional four-year crypto cycle is diminishing, with institutional adoption, spot ETF flows, on-chain growth, and pro-crypto regulatory changes becoming more significant drivers than previous boom-bust cycles [2] - Bitcoin is projected to become less volatile than major tech stocks like Nvidia, indicating a shift towards a broader institutional investor base [2] - ETFs are facilitating Bitcoin's transition into a mainstream, de-risked asset, with expectations that this trend will accelerate in 2026 [2] Group 2: ETF Impact and Demand - Bitwise's analysis suggests that ETFs will purchase more than 100% of the annual new supply of Bitcoin, Ethereum, and Solana, with Bitcoin ETFs having already absorbed nearly twice the amount of BTC mined since their launch [3] - Major financial institutions such as Morgan Stanley, Merrill Lynch, and Vanguard are opening ETF access, leading to overwhelming institutional demand for crypto assets [4] - Bitwise predicts that half of Ivy League endowments will gain exposure to crypto, following early adopters like Brown and Harvard, which is significant given the $870 billion endowment pool [4] Group 3: Performance of Crypto Equities - Crypto equities are expected to continue outperforming traditional tech stocks, with crypto equities rising over 500% over three years compared to a 140% increase in major tech stocks [5] - Polymarket's open interest is projected to reach new all-time highs, expanding beyond politics into various sectors such as sports and culture [6] Group 4: Future Correlation and Market Drivers - Bitwise expects Bitcoin's correlation with equities to decrease further in 2026, with crypto-specific fundamentals becoming the primary drivers of performance as regulation, ETF flows, and institutional adoption take precedence [7]