6 reasons why Bitcoin will outperform stocks and gold in 2026
The six factors K33 believes will drive Bitcoin higher this year:
First, Bitcoin's price is attractive. The firm points out that Bitcoin is currently trading at pre-Trump levels, making it attractive from a valuation perspective.
Bitcoin, which entered a technical bear market in November, has fallen 44% from its peak of around $126,000. It has also dropped about 24% from $109,000, a level it surpassed on Trump's inauguration day.
"K33 believes Bitcoin is undervalued compared to other asset classes," the researchers wrote.
Second, interest rate cuts by the Federal Reserve are coming. The Fed is expected to continue lowering interest rates in 2026, another factor that will boost investor appetite for riskier assets, including cryptocurrencies.
Investors generally expect the Fed to keep interest rates at their current levels at its January policy meeting. But markets are pricing in a 74% probability that the central bank will cut interest rates two or more times by the end of 2026.
Third: The Trump administration will support cryptocurrencies. The firm predicts that Trump will likely support Bitcoin and continue to push for greater integration of cryptocurrencies into the financial sector.
Trump has long presented himself as a pro-crypto president. In his second term, he signed a series of executive orders that boosted cryptocurrency market sentiment, appointed pro-crypto leaders to his administration, and even launched his own cryptocurrency.
The firm stated, “Bitcoin and other cryptocurrencies have the backing of the US administration. Bitcoin’s price doesn’t reflect this shift, and we believe 2026 presents a promising opportunity for Bitcoin and other cryptocurrencies as they become increasingly integrated with traditional finance.”
Fourth: The U.S. Strategic Reserve of Bitcoin is a positive factor. While little information is publicly available about the U.S. Strategic Reserve of Bitcoin, the U.S. government is likely holding around 233,736 Bitcoins, equivalent to approximately $20 billion in cryptocurrency, according to the latest estimates.
Fifth: Access to cryptocurrency funds may soon become available for retirement accounts. President Trump signed an executive order last August directing regulators to review rules regarding retirement accounts, potentially making it easier for these accounts to hold alternative assets, including cryptocurrencies.
K33 estimates that if just 1% of U.S. retirement account balances were allocated to Bitcoin, it would amount to holding $87 billion worth of Bitcoin.
Sixth: The Transparency Act is coming. Last summer, the U.S. House of Representatives passed the Transparency Act, a landmark bill in the cryptocurrency field, which aims to establish a framework for how banks and cryptocurrency companies can use and sell digital assets. The Senate is expected to vote on the bill during the first quarter of this year, which could increase the presence of cryptocurrencies in the world of traditional finance. This is another positive factor for Bitcoin prices, according to the research firm's report..
