Bitcoin Rising as Regulation and Institutions Align
Bitcoin and crypto prices continue to struggle in their recovery from the significant drop in late 2025, as traders speculate that a key game-changer remains unaccounted for in the market. The bitcoin price is fluctuating around $90,000 per bitcoin, experiencing a significant drop from its October high of $126,000, while forecasts suggest that gold and silver may continue to rise in 2026. As the market prepares for a monumental $17.3 trillion shift, analysts from market powerhouse Goldman Sachs have forecasted that this year could serve as a significant catalyst for institutional adoption of bitcoin and cryptocurrencies. “We see the improving regulatory backdrop as a key driver to continued institutional crypto adoption, especially for buyside and sellside financial firms, as well new use cases for crypto developing beyond trading,” James Yaro wrote in a note, pointing to the long-awaited U.S. market structure bill that’s currently making its way through Congress as a pivotal catalyst.
This week, Tim Scott announced that his panel will convene next week to discuss amendments and proceed to a vote on the crypto market structure bill referred to as the Clarity Act. The bill aims to establish regulations for tokenized assets and decentralized finance projects, delineating the responsibilities of the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission. Goldman analysts emphasize that these measures are crucial for unlocking institutional capital. Goldman analysts cautioned that the bill must be enacted in the first half of 2026, as the upcoming U.S. midterm elections in November could hinder advancement. Last year, White House AI and crypto czar David Sacks expressed confidence that the highly-anticipated bill could see passage in early 2026. “We had a great call today with chairmen [Tim Scott] and [John Boozman] who confirmed that a markup for Clarity is coming in January,” Sacks posted in January. “We are on the brink of enacting the pivotal crypto market structure legislation that President Trump has advocated for.”
Predictions for the bitcoin and crypto market have been echoed by others. “Adoption could slow in the first half of the year following the sharp selloff at the end of 2025, but passage of the Clarity Act could accelerate adoption in true institutional investors,” Jim Ferraioli stated. The anticipated surge in favorable crypto legislation has prompted bitcoin bulls to revise their price forecasts for 2026. “2026 could be a strong year for bitcoin, supported by potential rate cuts and a more accommodating regulatory stance toward crypto,” Youwei Yang told, putting his 2026 bitcoin price prediction at up to $225,000. Nonetheless, increased volatility is expected due to persistent macroeconomic and geopolitical uncertainties.
In a strategic move to stay ahead of regulatory advancements, powerhouse Morgan Stanley has filed this week to establish its own spot bitcoin exchange-traded fund, alongside a spot solana ETF. This initiative could signal a significant shift towards greater crypto adoption by the largest banks globally. “It’s interesting to see Morgan Stanley move into a commoditized market, and I suspect that means they want to move clients that invest in bitcoin into their ETFs which could give them a fast start despite their late entrance,” Bryan Armour told. “A bank entering the crypto ETF market brings a sense of legitimacy, potentially paving the way for others to follow suit.” In early 2024, Bitcoin ETFs, spearheaded by BlackRock’s bitcoin fund, made their debut on market, with the funds soaring to a staggering $130 billion in total net assets, representing approximately 7% of bitcoin’s overall value.
