Bitcoin Slumps Despite 2026 Boom Hopes
Bitcoin and crypto prices have faced challenges this year, even with forecasts suggesting that the Federal Reserve will “accelerate” U.S. dollar “destruction” in 2026—potentially sparking a significant bitcoin price surge. The bitcoin price has experienced a 6% decline through 2025, leaving many of the most optimistic bitcoin price predictions in the dust and raising concerns about a potential significant crypto crash. As U.S. President Donald Trump forecasts a 2026 “boom the likes of which the world has never seen,” Treasury Secretary Scott Bessent has detailed the Trump administration’s strategy for the “merger” of Main Street and Wall Street—coinciding with Wall Street’s growing acceptance of bitcoin and crypto. “This is the biggest merger in history because it is merging Main Street and Wall Street,” Bessent stated.
“In 50 years, this administration will likely be credited with having saved or created the notion that everyone is an equity owner, ensuring that all individuals have a stake in the market.” Earlier this year, Congress passed the so-called “big beautiful bill,” which introduced a new savings plan for children featuring a one-time deposit of $1,000 from the federal government for newborns. Referred to as “Trump accounts,” these will operate similarly to an individual retirement account. “These Trump accounts I believe are a game-changer … “When we look back in 50 years, I think this administration will have saved or created the idea that everyone is an equity owner, that everyone has a stake in the market,” Bessent said. Bessent, in her dual role as IRS commissioner and Treasury secretary, forecasted that the significant tax cuts from the big beautiful bill will lead to a “gigantic refund year in the first quarter.”
The drive to encourage individuals to invest in assets coincides with Wall Street’s significant influx into bitcoin and crypto over the past two years. “Bitcoin’s disappointing 2025 finale masks a year that has seen it hit a brand new all-time high of $126,000, while the most conservative financial institutions—like Vanguard and even JP Morgan—are beginning to accept it as a legitimate part of the wider financial ecosystem,” Nic Puckrin said. “It was also the year that witnessed BlackRock’s iShares Bitcoin Trust ETF emerge as one of the most successful launches in history, alongside the approval of several altcoin ETFs that have experienced robust demand.” During sell-offs, it can often be challenging to see the bigger picture amidst the chaos. However, when we take a broader perspective, it’s important to note that even a $90,000 bitcoin was merely a fantasy just a few years back.
BlackRock has accumulated a nearly $70 billion spot bitcoin exchange-traded fund since its launch in early 2024. Meanwhile, major players like Goldman Sachs and Morgan Stanley have begun to open their trading desks to bitcoin and crypto. Wall Street’s adoption coincides with the Trump administration’s efforts to integrate crypto, particularly stablecoins, into the mainstream financial system. The Genius Act stablecoin bill introduced earlier this year is anticipated to be succeeded by the market structure bill in the first quarter of 2026. Currently, bitcoin and crypto traders are not anticipating significant movements, as trading volumes remain subdued during the holiday season. “With the Christmas holiday season approaching, liquidity conditions are expected to remain thin, limiting bitcoin’s ability to establish a sustained directional trend in the near term,” said Yuya Hasegawa. “The volatile price movements seen this week seem primarily linked to a decline in market participation, indicating that unstable trading conditions could continue into the following week.” Despite the year-end typically being linked to a ‘Santa Claus rally,’ this seasonal trend has not been observed in the last two years. Consequently, any imminent recovery in bitcoin is expected to hinge on data and sentiment, rather than being influenced solely by seasonal trends.
