Bitcoin is entering a decisive phase where structure, policy, and positioning are starting to align. Institutional market makers warn that crypto’s next major recovery in 2026 will depend on deeper shifts in liquidity and participation, while fresh policy initiatives in the US are quietly pushing Bitcoin closer to everyday use.
At the same time, large traders are adjusting risk ahead of key legal decisions, adding a layer of short-term volatility to an otherwise steady market. On the charts, Bitcoin reflects this balance, consolidating after a strong breakout, with technical signals pointing to controlled, constructive price action rather than stress.
Crypto’s 2026 Comeback Depends on Key Shifts, Wintermute Says
According to cryptocurrency market creator Wintermute, significant adjustments in market structure following a poor 2025 will be necessary for a significant comeback in 2026. The typical four-year cycle for Bitcoin only saw a slight increase, and gains did not transfer to other cryptocurrencies, indicating that the cycle may be becoming less significant.
Wintermute claims that last year’s liquidity remained concentrated in Bitcoin and Ether due to institutional inflows and spot ETFs. As a result, the market’s breadth was diminished and altcoin rallies were curtailed since investors stopped rotating throughout the market and instead became more picky.
According to Wintermute cryptocurrency needs at least one of three things in 2026, institutions growing beyond Bitcoin and Ethereum a significant increase in large assets that generates a broader wealth effect or a return of retail investors. Reduced interest rates may encourage a renewed desire for risk.
Inflows into ETFs and institutional demand continue to favor Bitcoin the most. Although this restricts the potential of altcoins it upholds Bitcoin’s hegemony. Bitcoin is likely going to spearhead any wider cryptocurrency rebound in 2026 if rate reductions and retail engagement rise.
Rhode Island Reintroduces Bitcoin Tax Exemption Bill
A plan that would temporarily remove minor Bitcoin transactions from state taxes has been presented by Rhode Island lawmakers for the second consecutive year. Instead than viewing Bitcoin as purely an investment the measure seeks to lower tax barriers and promote regular use of the cryptocurrency.
According to the plan state income and capital gains taxes would not apply to Bitcoin transactions up to $5,000 per month with a $20,000 annual ceiling. Both private citizens and Rhode Island-based companies would be eligible for the exemption.
This effort which is going to be a pilot experiment will start in 2027 and terminate in 2028 unless it is extended. Additionally, the law would make it easier for taxpayers to self-certify their status using simple documentation.
Should the measure be approved it would encourage the usage of Bitcoin as a digital currency rather than merely a speculative investment. These kinds of pro-Bitcoin bills can increase real-world acceptance bolster long-term demand, and promote a favorable outlook for BTC, particularly if more US states adopt a similar strategy.
Mysterious Crypto Trader Bets Big Ahead of Supreme Court Tariff Ruling
Ahead of the US Supreme Court’s judgment on President Trump’s tariffs which might have a significant impact on international markets an enigmatic cryptocurrency trader has taken significant action. The court is examining Trump’s legal authority to enact broad tariffs without the consent of Congress. The United States may be required to reimburse more than $130 billion in duties collected if the government loses the case.
The trader closed almost $400 million in long positions before to the decision locking in about $14.5 million in profit when cryptocurrency prices increased following weaker US inflation statistics. The trader quickly switched to short positions speculating that the judgment may cause cryptocurrency prices to decline.
These short positions which use heavy leverage on a decentralized exchange include Solana, Ethereum and Bitcoin. News about tariffs and policies frequently causes Bitcoin to respond dramatically. A bad decision can raise market uncertainty and cause short-term Bitcoin volatility. Longer-term policy unpredictability however might still make Bitcoin more appealing as a risk hedge for the economy and politics.
Bitcoin (BTC/USD) Outlook: Technical Signals Point to Controlled Consolidation
From a technical perspective, Bitcoin remains constructive. Price continues to form higher lows above the rising 50-EMA, while the 200-EMA trends upward below $94,000, reinforcing medium-term support.
Pullbacks have been shallow and corrective, marked by small-bodied candles and brief Doji pauses rather than aggressive selling.
Bitcoin (BTC/USD) Price Chart – Source: TradingviewMomentum indicators support this view. The RSI has cooled into the 55–60 zone, a healthy reset following overbought conditions, with no bearish divergence visible. As long as Bitcoin holds the $95,700–$95,200 demand zone, the bullish structure remains intact.
$100,000 Back in Focus if Resistance Breaks
The current range resembles a bullish consolidation flag, suggesting accumulation rather than distribution. A brief dip toward support followed by a higher low could set the stage for another push above $97,600. A confirmed break would expose $98,800, with extension potential toward the psychological $100,000 level.
Bitcoin Hyper: The Next Evolution of BTC on Solana?
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As Bitcoin activity climbs and demand for efficient BTC-based apps rises, Bitcoin Hyper stands out as the bridge uniting two of crypto’s biggest ecosystems. If Bitcoin built the foundation, Bitcoin Hyper could make it fast, flexible, and fun again.
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