Crypto demand outlook for 2026 raises concerns as Wall Street's 2025 bets loom large

Crypto demand outlook for 2026 raises concerns as Wall Street's 2025 bets loom large

In 2025, Bitcoin ETFs saw $57 billion in inflows, but a recent slowdown raises questions about 2026 demand. Will new narratives drive recovery or deter investment?

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In 2025, the cryptocurrency market experienced significant growth, with total net flows into spot Bitcoin ETFs reaching $57 billion and total net assets accumulating to $114.8 billion. This surge was attributed to favorable regulations and Wall Street's acceptance of digital currencies like Bitcoin (BTC), Ether (ETH), and Solana (SOL) as legitimate investment options.

However, as 2026 approaches, questions arise about whether the momentum seen in institutional and corporate adoption will persist. Since October, there has been a noticeable decline in inflows to Bitcoin ETFs, leading to a market shift where sellers outnumber buyers, resulting in corrections of 30% for BTC and 50% for ETH.

Ray Salmond, Head of Markets at Cointelegraph, indicated that the future of the crypto market will hinge on various factors, including the narratives surrounding AI advancements and Federal Reserve rate changes. The performance of tech-heavy indices like the S&P 500 and the continued interest in AI-driven growth are expected to influence investor sentiment in the crypto space.

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