$100k back in play: 3 reasons Bitcoin could be on the march again

Before anyone has really had a chance to catch their breath, markets are well and truly up and running again in 2026, and one notable early mover has been cryptocurrency.

Bitcoin, the world's largest cryptocurrency, is already up 9.5% so far in 2026, with other "blue chip" cryptocurrencies like Ethereum (up 11.6%) and Solana (14.4%) also showing strong momentum early this year. 

After a tumultuous 2025, these early green shoots are suggesting 2026 could be a more positive year for the sector as macro and regulatory tailwinds coalesce.

1.  Bitcoin ETFs are flowing again 

Net inflows into the US's major spot Bitcoin ETFs are back at their highest level since October, when Bitcoin hit its all-time high of roughly US$127,000. 

On Wednesday, daily net inflows hit the US$1 billion figure, the first time they have hit that milestone since October, before a damaging liquidation event (the largest in crypto history) on 10 October spooked investors and sent crypto prices tumbling. 

There's something of a correlation between net flows and the Bitcoin price, with sustained net inflows naturally having a positive impact. 

2. A new Federal Reserve 

US Federal Reserve chairman Jerome Powell is due to step down in May, and investors are betting on his replacement cutting interest rates multiple times in 2026. 

With trillions of dollars waiting on US money markets waiting to see where US interest rates go, Bitcoin and crypto could be one of the biggest beneficiaries if the Fed does cut rates. 

With Bitcoin now part of the "debasement trade" alongside gold, according to JPMorgan, rate cuts could serve as a key catalyst for Bitcoin in 2026 as it looks to surpass its previous ATH. 

The politicisation of the Fed by Trump and his allies has been one of the more pernicious actions of the current administration but has garnered little reaction from markets. 

Federal prosecutors recently took the unprecedented step of opening a criminal investigation into Powell over testimony he gave to the US Senate, and his successor is likely to be handpicked by Trump to enact an aggressive rate-cutting program.

3. Regulatory clarity is coming

The aptly-named CLARITY Act, one of the key pieces of crypto legislation that has been on the table for years, was finally introduced to the US Senate earlier this week. 

As Merkle Tree Capital's Ryan McMillin told me recently, "the CLARITY Act of 2025 is heading into a key markup in early 2026 and is designed to finally delineate what is a security, what is a commodity, and how exchanges and stablecoins are supervised."

It should bring a degree of certainty, and yes, clarity, to where Bitcoin and other cryptocurrencies sit in financial markets and the institutions responsible for governing them. 

While the Senate has delayed its debate of the bill to late January amidst pushback from Coinbase CEO Brian Armstrong, it is seen as a crucial next step in the mainstreaming of crypto. 

"It has bipartisan support, and [its] passage will unlock balance-sheet and product approvals at big banks, brokers and asset managers that have been waiting years for this," says McMillin.