Wall Street’s bid on crypto dominated 2025 but what’s the demand outlook for 2026?

The crypto market experienced a blockbuster 2025 driven by Wall Street acceptance and crypto-friendly regulation, evidenced by $57 billion in net inflows to spot Bitcoin ETFs. However, the outlook for 2026 is uncertain, as inflows have recently tapered, leading to corrections in BTC and Ether.

Cointelegraph Head of Markets Ray Salmond noted that 2026 performance hinges on whether 2025's key drivers—AI narratives, Fed rate cuts, and ETF flows—can sustain momentum, or if new catalysts are needed. Investor sentiment will be heavily influenced by the AI buildout's monetization success and the performance of tech equities like MAG7, especially concerning potential debt issues in AI/quantum companies.

Key regulatory and economic factors include the potential passage of the Clarity Act, which would provide regulatory clarity in the US, and the expected shift to an easy money policy with anticipated Fed rate cuts under a Trump-aligned chair. While rate cuts are generally bullish for risk assets, Salmond points to a 'Tale of Two Cities' scenario where cooling job markets and rising consumer costs clash with expectations of lower mortgage rates, making the actual impact of Fed policy on the consumer the ultimate determinant for crypto direction in early 2026.

(Source：Cointelegraph)