Central Bank to Allocate $300M in Crypto as Bitcoin Eyes $150K in 2026

A central bank has announced plans to allocate $300 million into cryptocurrencies in 2026. The move is part of a broader strategy to diversify reserves and explore digital asset integration. The decision highlights growing institutional confidence in crypto markets.

The bank cited macroeconomic stability and the potential for long-term gains as key reasons for the allocation. The specific assets and mechanisms have not yet been disclosed, but the plan underscores the increasing role of digital assets in traditional finance.

Meanwhile, a prominent analyst at Bernstein has predicted Bitcoin will hit $150,000 by year-end 2026. The firm cited a favorable macroeconomic environment and rising tokenization adoption as key drivers.

South Korea has also signaled a shift in its crypto policies. The country plans to open its foreign exchange market fully and is considering allowing corporate investments in digital assets. This aligns with broader efforts to integrate digital currencies into the national economy.

Why Did This Happen?

The push for crypto adoption has gained momentum amid global market uncertainty. Central banks and institutional investors are re-evaluating their asset portfolios to include digital alternatives that offer inflation hedging and diversification benefits.

South Korea's government forecast a 2% economic growth for 2026, partly due to stronger domestic consumption and semiconductor-led exports. The improved outlook has encouraged officials to liberalize financial markets, including crypto investment.

Political tensions in the U.S. have also played a role. A criminal investigation into Federal Reserve Chair Jerome Powell has raised concerns about central bank independence. This has led to increased interest in decentralized assets like Bitcoin as a potential hedge against institutional risk.

How Did Markets React?

Bitcoin's price rose above $92,000 shortly after news of the Powell investigation broke. The asset's volatility increased amid the political uncertainty and expectations of potential Fed restructuring.

In the DeFi space, platforms such as BenPay DeFi Earn introduced new yield opportunities. These products allow users to earn returns through protocol-level mechanisms, offering stable and predictable earnings.

South Korean investors have also shown strong interest in crypto ETFs and gold-related funds. Mirae Asset ETFs outperformed major U.S. indices in 2025, with several funds generating over 100% returns. This performance has drawn more capital into digital and alternative asset classes.

Regulatory clarity is expected to support further adoption. South Korea plans to introduce a licensing system for stablecoin issuers, requiring 100% reserve asset backing. This move aims to enhance trust and transparency in the crypto market.

What Are Analysts Watching Next?

Analysts are closely monitoring the U.S. political landscape and its implications for the Federal Reserve. A potential shift in monetary policy could influence investor behavior and the appeal of decentralized assets like Bitcoin.

Coinbase has expressed concerns about a proposed Senate bill that could ban stablecoin rewards. The company argued that such restrictions could weaken the U.S. dollar's dominance and benefit China's digital yuan initiative.

Institutional investors are also watching the development of crypto treasuries. Bitcoin treasury companies have gained traction, with the market expecting continued adoption by public companies. This trend has been described as the "new altcoin season" by crypto experts.

The volatility of Bitcoin versus traditional assets like the S&P 500 remains a key focus. While equities have remained stable, Bitcoin's price swings reflect its sensitivity to macroeconomic signals and liquidity shifts.

South Korea's move to open its foreign exchange markets could attract more global capital. The government expects to fully implement a 24-hour onshore FX trading system by mid-2026, aligning with international financial centers.

With regulatory developments and political dynamics shaping the crypto landscape, investors are recalibrating their risk exposure. The coming months will be critical for determining the trajectory of digital assets in both institutional and retail portfolios.