“Bitcoin to $170K: Reaganomics 2.0 Will Send BTC Soaring in 2026”
South Korea’s Korbit Research Center initiatives Bitcoin to commerce between $140,000 and $170,000 in 2026, citing US fiscal coverage reforms and structural institutional demand as major catalysts.
In its fourth annual market outlook, Korbit’s analysis group outlined a macro-driven thesis diverging from the normal four-year halving cycle narrative. The report argues that Bitcoin’s worth trajectory might be formed much less by supply-side mechanics and extra by productivity-led US development below what it phrases “stronger Reaganomics.”
Triple-Axis Rebalancing Puts Bitcoin in Sovereign-Asset Class
The forecast highlights three predominant drivers reshaping asset allocation. Strong US greenback forecasts, attainable gold worth corrections, and Bitcoin’s rising institutional presence by means of ETFs and Digital Asset Treasuries essentially alter how buyers see digital belongings. As of November 2025, ETFs and DATs collectively maintain about 11.7% of Bitcoin’s complete provide.
Central to the forecast is the One Big Beautiful Bill (OB3), enacted in July 2025. The invoice completely restores 100% bonus depreciation and speedy R&D expensing. Korbit estimates these provisions will cut back efficient company tax charges to 10-12%, triggering a capital expenditure growth and attracting overseas direct funding. This coverage combine, the report contends, will maintain greenback power, opposite to Wall Street’s consensus that expects depreciation.
In a strong-dollar, disinflationary atmosphere, gold might underperform as a yield-free asset. At the identical time, Bitcoin consolidates its place alongside the greenback as a sovereign-grade retailer of worth, presumably main to gold corrections—whilst some analysts venture gold at $4,000 per ounce, down 5% from present ranges.
This change is difficult older portfolio fashions. Bitcoin now operates extra like a sovereign-level retailer of worth, standing toe-to-toe with gold and the greenback in institutional allocations.
The ordinary four-year Bitcoin cycle is turning into much less related. High charges, shrinking liquidity, and slower market rallies have modified the panorama. Rather than a pointy rally by the top of 2025, specialists now see worth consolidation in the $100,000–$120,000 vary, with a attainable second peak in 2026 if liquidity returns.
Institutional adoption continues to rise, regardless of macro headwinds. Bitcoin ETFs are seeing sturdy inflows since approval, and extra firms are including substantial Digital Asset Treasury holdings. This gives stronger worth help and fewer volatility than in earlier cycles.
GENIUS Act Compliance Spurs Layer 1 Blockchain Rivalry
The GENIUS Act, signed in July 2025, delivers clear federal guidelines for fee stablecoins. White House documentation confirms the legislation requires 100% reserves in money or short-term Treasuries from issuers. Regulatory certainty is prompting US banks and establishments to undertake stablecoins swiftly.
This compliance additionally brings technical calls for. Institutions want blockchains with on the spot finality and privateness options to effectively meet KYC and AML necessities. Ethereum’s 12-second finality and full transaction transparency deter institutional customers requiring privateness and on the spot settlement. New Layer 1 networks, together with Arc, Tempo, and Plasma, are rising with selective privateness options and sub-second finality designed for regulatory compliance.
Meanwhile, Solana is making beneficial properties in retail use and can introduce Firedancer in early 2026. This improve goals for a lot faster settlements and better throughput, which may assist Solana win extra institutional stablecoin enterprise.
Perpetual DEXs Dominate: Tokenization Pushes DeFi Forward
Decentralized exchanges now account for 7.6% of complete cryptocurrency quantity as of mid-2025 and will attain 15% by the top of 2026. Perpetual derivatives DEXs are on the forefront, incomes a lot of the high DeFi protocol revenues. OAK Research data exhibits Hyperliquid held 73% of perpetual DEX market share by June 2025.
Hyperliquid’s dominance comes from environment friendly commerce matching, quick adoption, and artistic tokenomics. HYPE token buyback mannequin spurs ongoing demand, and merchants can create markets for any asset. Competitors are increasing into real-world belongings, FX, commodities, and US equities.
The tokenization of real-world belongings has reached $35.6 billion as of November 2025. Growth is led by non-public credit score and US Treasury tokenization. The report expects fintech and web3 companies to drive additional adoption, as conventional finance faces hurdles with legacy processes and compatibility points.
Super-app competitors can be heating up. Robinhood integrates shares, crypto, perpetuals, and real-world belongings in a single platform. Coinbase, utilizing CFTC licenses, goals to be the go-to for all on-chain belongings and is awaiting regulatory approval for tokenized securities.
Prediction markets are set to profit as effectively. Platforms like Polymarket, Kalshi, and Opinion have seen rising volumes and elevated regulatory consideration. With CFTC approval in the US, these venues are shifting nearer to the mainstream.
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