Analysts expect selective capital flow favoring Bitcoin and established cryptocurrencies
Expectations of a broad crypto altseason in 2026 may be misplaced, as analysts warn that market liquidity is likely to concentrate around a small group of blue-chip digital assets rather than lifting the entire altcoin market. The outlook suggests a more selective investment environment shaped by macroeconomic conditions, institutional behavior, and shifting market cycles.
Liquidity to Favor Blue-Chip Cryptocurrencies
Market research indicates that retail-driven altcoin rallies may fade in the coming year. Instead of a “rising tide lifting all boats,” analysts anticipate capital flowing primarily into established cryptocurrencies with proven adoption, infrastructure, and resilience. This shift reflects growing investor preference for assets perceived as lower risk amid uncertain global liquidity trends.
While global liquidity conditions in 2026 are expected to improve modestly, divergent central bank policies could limit aggressive risk-taking. Notably, Bitcoin’s historical correlation with M2 money supply growth has weakened, particularly following the approval of spot Bitcoin exchange-traded products in 2024, signaling a structural change in how capital enters the crypto market.
Some forecasts project Bitcoin reaching as high as $180,000 by 2026, driven by institutional demand and reduced sensitivity to short-term liquidity shifts. However, contrasting views remain. Veteran market observers continue to highlight Bitcoin’s historical pattern of parabolic rallies followed by deep corrections of 80% or more.
Under the widely discussed four-year market cycle theory, the next major Bitcoin peak could occur around 2029, roughly one year after the next halving event expected in 2028. If historical drawdowns repeat, prices could retrace sharply before the next sustained uptrend.
Overall, 2026 may mark a period where quality outweighs speculation, with blue-chip crypto assets emerging as primary beneficiaries while most altcoins struggle to attract meaningful liquidity.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.