Bitcoin leads crypto markets into 2026 as liquidity shifts and onchain activity accelerates
Bitcoin is setting the tone for crypto markets heading into 2026, with subdued volatility, strong institutional demand and growing onchain innovation reshaping market structure, a research firm said.
Crypto markets have entered 2026 with Bitcoin continuing to drive overall risk sentiment, amid shifting liquidity dynamics and accelerating onchain innovation, the company said in a statement.
The firm said US-listed Bitcoin exchange-traded funds, alongside digital asset treasuries such as Strategy, accounted for nearly $44 billion of net spot demand during 2025, underlining the scale of institutional participation in the market.
Bitcoin Coin Days Destroyed reached its highest level on record for a single quarter in the fourth quarter of 2025, signalling increased turnover among long-term holders, according to the statement.
Despite this activity, volatility has remained unusually low. Bitcoin’s 30-day realised volatility stayed largely in the 20% to 30% range, even as its share of total crypto market capitalisation averaged above 60% throughout 2025. The firm added that stablecoin liquidity rose to all-time highs over the same period.
Macro-economic conditions are expected to play a growing role in 2026. The company said economic growth is forecast to remain modest, inflation pressures are proving sticky, and the pace of monetary easing has slowed compared with 2025.
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It also highlighted upcoming policy and structural factors, including the expiry of Jerome Powell’s term as chair of the Federal Reserve in May 2026. Tokenisation of real-world assets was cited as another key trend, having grown from about $5.6 billion to nearly $19 billion.
The firm added that regulatory developments, including new legislative efforts affecting onchain dollar liquidity and market structure, are increasingly shaping how capital flows through crypto markets.
The Recap
- Bitcoin leads crypto risk sentiment into 2026 market cycle.
- ETFs and treasuries provided nearly $44 billion net spot demand.
- Powell’s Federal Reserve term expires in May 2026.
