Yi Lihua: Dawn of Crypto Bull Market as Supercycle Gains Momentum

Yi Lihua, founder of Liquid Capital, has expressed optimism about the crypto market, calling the current moment 'the dawn before the bull market.' He aligns with Changpeng Zhao's (CZ) view of a coming 'supercycle,' citing catalysts such as the interest rate cut cycle, stablecoin globalization, and on-chain financial innovation.

He pointed out that the crypto industry's three key markets—China, the U.S., and South Korea—are currently in bull phases, with major funds flowing into equities. Despite Bitcoin's modest gains since its 2021 peak, Yi emphasized that macroeconomic and technical indicators suggest a new bull run is taking shape.

Bernstein, a Wall Street broker, has also highlighted the potential for a tokenization 'supercycle' in 2026. The firm forecasts a new bull phase driven by tokenization in areas such as stablecoins, capital markets, and prediction markets.

Why Is the Tokenization Supercycle Gaining Traction?

The tokenization supercycle refers to a prolonged period of growth where real-world assets are converted into digital tokens on blockchains. This trend is expected to permeate stablecoins, capital markets, and prediction markets, creating a new layer of liquidity.

Bernstein analysts predict this shift will mirror the internet's evolution from a niche tool to a global infrastructure layer. Tokenization could fractionalize ownership, automate compliance, and enable 24/7 trading for assets like bonds and real estate.

This transition is not speculative. Instead, it is supported by major institutions such as BlackRock and JPMorgan, which are building foundational infrastructure for tokenized assets.

What Are the Market Implications of the Supercycle?

Bernstein has set a price target of $150,000 for Bitcoin in 2026, with a cycle peak of $200,000 by 2027. These projections are based on adoption curves, halving cycle impacts, and the influx of institutional capital via tokenized funds and ETFs.

The firm also predicts a late 2025 market correction that will serve as the final bottom before the next bull run. Historically, Bitcoin has seen deep drawdowns of 70-80% after bull market peaks, and a similar consolidation would align with past cycles.

Stablecoin supply is expected to grow significantly, reaching $420 billion by 2026. This growth is supported by cross-border business payments, consumer remittances, and stablecoin-based neobanks.

Who Are the Key Beneficiaries of the Supercycle?

Coinbase and Robinhood are among the crypto-linked stocks identified as major beneficiaries of the tokenization supercycle. These platforms are expected to gain from increased trading volumes, custody fees for tokenized assets, and expanded service offerings.

Coinbase, for example, is building a layer-2 blockchain, Base, and positioning itself as a key on-ramp for institutional tokenization projects. Robinhood's user base is also expected to expand as tokenization brings more users and assets on-chain.

The broader financial system is expected to evolve as a result of the tokenization supercycle. This includes increased market efficiency, enhanced financial inclusion through fractional ownership, and new regulatory challenges.

What Regulatory Developments Are Influencing the Market?

Legislation is a key factor shaping the 2026 market outlook. The Responsible Financial Innovation Act (RFIA) in the Senate and the CLARITY Act in the House aim to establish a clear regulatory framework for digital assets.

The Senate Banking and Agriculture Committees are set to hold markup hearings for the Digital Asset Market Clarity Act of 2025, which defines digital commodities and clarifies the roles of the Commodity Futures Trading Commission and the SEC in crypto regulation.

Advocacy groups like Stand With Crypto and The Digital Chamber are actively working to ensure the passage of pro-crypto legislation. Stand With Crypto has added 675,000 advocates in 2025, bringing its total to 2.6 million.

What Is the Current Investor Sentiment in the Market?

Investor sentiment has recently shifted as expectations for Federal Reserve easing have dimmed. Global digital asset investment products logged $454 million in net outflows in the week ending January 13, 2026.

Bitcoin and Ethereum prices have slipped following a reversal in inflows at the start of the year. While Bitcoin-linked products bore the brunt of the outflows, some alternate tokens, such as Solana, XRP, and Sui, saw inflows.

Despite this, sentiment around the tokenization supercycle remains positive. The U.S. remains the only market with significant net outflows, while Germany, Canada, and Switzerland saw inflows into crypto ETPs.