Bitcoin News Today: Institutional Demand and Fed Moves Fuel Bitcoin's 2026 Bull Case

Bitcoin Could Keep Surging to New Highs Into 2026, Says Bernstein

Bitcoin’s recent price movements have sparked renewed debate over its long-term trajectory, with Bernstein analysts suggesting that the cryptocurrency could continue setting records through 2026. Despite recent volatility, including a pullback from a recent peak of $124,496 to around $114,000, the market remains in a bullish phase, supported by growing institutional and corporate adoption and robust on-chain fundamentals.

The recent price correction, which saw Bitcoin fall nearly 10% from its record high, was driven by macroeconomic concerns and profit-taking by traders. According to data from Coin Glass, over $530 million in long positions were liquidated in a 24-hour period, with Bitcoin and Ether both facing heightened selling pressure. This decline was exacerbated by higher-than-expected July wholesale inflation data, which raised doubts about the likelihood of a Federal Reserve rate cut in September [1].

Despite the short-term turbulence, Bitcoin’s broader trend remains intact. ETF inflows into Bitcoin and Ethereum continued to show strength, with Ethereum funds recording a record $2.9 billion in inflows for the week, the 14th consecutive week of positive flows [1]. These flows reflect growing institutional interest in crypto assets, driven by the launch of U.S. spot Bitcoin ETFs and a surge in corporate buybacks by firms such as SharpLink Gaming and BitMine Immersion Technologies. The cumulative effect of these factors has led to a tightening supply dynamic, with structural demand continuing to outpace supply [4].

Looking ahead, the Federal Reserve’s policy path will remain a key driver for Bitcoin’s performance. The upcoming Jackson Hole symposium in Wyoming will be closely watched for any signals about the central bank’s rate-cutting intentions. Treasury Secretary Scott Bessent has already suggested that a 50 basis point rate cut in September is possible, echoing a similar surprise move in 2024 that fueled Bitcoin’s rally [3]. Analysts are divided on whether this would translate into sustained momentum for Bitcoin, but most agree that any easing of financial conditions would support risk-on sentiment across asset classes.

Meanwhile, the broader cryptocurrency market has remained resilient, with Ethereum inching closer to its 2021 high. At $4,544, Ethereum is within 6.6% of its peak and has seen robust trading volume and a growing treasury of ETH held by major firms. On prediction markets like Myriad Markets, traders are increasingly confident in Ethereum hitting $5,000 by the end of 2025, with odds of an 82% probability as of late July [4]. This optimism is partly fueled by ongoing upgrades to Ethereum’s infrastructure, including increased gas limits and the development of the "Lean Ethereum" roadmap.

In parallel, XRP has also shown strong performance, with traders on Myriad Markets leaning toward a $4 target before the end of 2025. Despite a 16% pullback from its July high, XRP remains a key focal point in the market’s narrative, especially as stablecoin adoption continues to expand. The U.S. Treasury has also been actively engaging with the crypto sector, soliciting public input on how to detect and prevent illicit activities tied to digital assets under the framework of the newly enacted GENIUS Act [7].

In the corporate space, a wave of initial public offerings (IPOs) is gaining traction, with firms like Grayscale, Gemini, and BitGo preparing to enter the public markets. These moves reflect growing mainstream confidence in crypto infrastructure and services, with Grayscale alone managing over $33 billion in assets through its Bitcoin and Ethereum trusts [8]. The recent success of companies like Circle and Bullish, despite some short-term volatility in their shares, underscores the potential for crypto-related firms to attract substantial capital from public investors.

While the market remains volatile, the long-term case for Bitcoin and other major cryptocurrencies appears intact. With structural demand continuing to outpace supply, favorable macroeconomic conditions, and a rapidly evolving regulatory landscape, the stage is set for further appreciation in the coming months. Bernstein’s 2026 price target for Bitcoin remains a focal point for investors and traders alike, as they await key macroeconomic data and policy developments that could determine the next chapter in the crypto bull run.

Source:

[1] Crypto Market Today (https://www.cnbc.com/2025/08/18/crypto-market-today.html)

[2] Bitcoin Sell Pressure 'Palpable' as BTC Bid Support Stacks (https://cointelegraph.com/news/bitcoin-sell-pressure-palpable-btc-bid-support-stacks-at-105k)

[3] Wall Street Issues Serious $6.6 Trillion Crypto Warning (https://www.forbes.com/sites/digital-assets/2025/08/19/wall-street-issues-serious-66-trillion-crypto-warning-as-price-crash-fears-hit-bitcoin-ethereum-and-xrp/)

[4] Myriad Moves: Where Are Ethereum, Solana and XRP Prices (https://finance.yahoo.com/news/myriad-moves-where-ethereum-solana-174648616.html)

[5] Comparative Report: Ethereum vs. Solana (https://messari.io/compare/ethereum-vs-solana)

[6] UK Must Change Bitcoin Rules to Catch Up with Trump (https://uk.finance.yahoo.com/news/uk-must-change-bitcoin-rules-105732323.html)

[7] US Treasury Department Seeks Public Input to Help Tackle (https://www.mitrade.com/insights/news/live-news/article-3-1049437-20250819)

[8] 3 Crypto IPOs In The Pipeline Post Circle (https://bitcoinist.com/3-crypto-ipos-in-the-pipeline-post-circle/)