As the digital asset space continues evolving rapidly, noted cryptocurrency analyst Miles Deutscher has shared his insights regarding the principal trends anticipated to influence crypto markets in 2026, alongside his forecast for Bitcoin's year-end valuation.
One of the critical areas highlighted by Deutscher is the prediction market sector, where he foresees substantial expansion. Specifically, he anticipates monthly trading volumes could swell to approximately five times their current magnitude, potentially reaching $95 billion during at least one month within 2026. This projected surge is attributed to emerging product innovations, particularly the introduction of leveraged prediction market formats, which promise enhanced engagement and liquidity.
In addition to prediction markets, Deutscher points to the burgeoning field of crypto-native and stablecoin-centric neobanks as a notable breakout category. He emphasizes that improvements in infrastructural capabilities, combined with escalating user demand especially in developing regions, position these platforms at the cusp of a significant growth phase. Given the broad addressable markets these neobanks can tap into, Deutscher posits that they might rapidly become among the fastest expanding verticals in the cryptocurrency ecosystem.
Regarding stablecoins, Deutscher anticipates their supply will continue to expand robustly, estimating a growth exceeding 50 percent following an increase from approximately $200 billion to $300 billion observed in the previous year. This expansion is expected to be further propelled by progressive regulatory developments in the United States—most notably, the prospective enactment of legislation such as the GENIUS Act—which could help facilitate wider adoption by providing clearer guidelines and enhanced institutional confidence.
The analyst also underscores institutional involvement as a dominant theme shaping the crypto landscape going forward. Increasingly, market movements are being influenced by exchange-traded funds (ETFs), regulated investment vehicles, and protocols offering real-yield returns. Deutscher notes a discernible shift favoring projects that generate tangible revenue streams and cater effectively to institutional demands, reflecting maturing market dynamics.
Turning specifically to Bitcoin's price trajectory, Deutscher refrains from assuring a parabolic “blow-off” spike, indicating that such an event remains uncertain. Nevertheless, his baseline expectation is that Bitcoin will conclude 2026 at a higher price level than at the start of the year. He projects Bitcoin's closing valuation to exceed the $90,000 range, with support derived from late-cycle market factors and historical patterns of price bottoming behavior familiar to investors and analysts alike.
Despite Bitcoin's long-term uptrend characterized by periodic higher highs and higher lows throughout 2024 and 2025, there is observable weakening in retail investor sentiment during recent price retracements. Data sourced from CryptoQuant points to the Short-Term Holder Spent Output Profit Ratio, which indicates that numerous retail participants have been liquidating their Bitcoin holdings at a loss consistently over roughly the past 70 days. The indicator currently hovers near 0.98, a level previously associated with episodes of pronounced market fear observed in late 2022.
This divergence between retail selling pressure and Bitcoin’s stronger broader price structure signals a recurring pattern: short-term holders often capitulate amid corrections, even as the overarching trend remains resilient. Such situations historically have tended to precede renewed price appreciation rather than signaling a reversal in Bitcoin's fundamental upward trajectory.
The coexistence of increased institutional influence, evolving industry verticals such as prediction markets and neobanks, alongside regulatory clarifications, suggests an ecosystem in transition. While uncertainties around speculative price surges persist, the set of factors discussed by Deutscher collectively indicate sustained growth potential for Bitcoin and the wider crypto market through 2026.