Cryptocurrencies are expected to stay intriguing in 2026.

Cryptocurrencies have had a tumultuous year, experiencing significant price fluctuations and ending with losses in value. Despite this, demand for crypto ETNs remained high. Looking ahead to 2026, forecasts suggest that surprises can be expected in both positive and negative directions.

In 2025, major cryptocurrencies like Bitcoin, Ethereum, and Solana saw moderate losses in value, with Bitcoin decreasing by 6 percent, Ethereum by 11 percent, and Solana by 34 percent. When measured in euros, the price declines were even more significant, ranging from 17 to 42 percent. However, in the preceding 24 months, Bitcoin had surged almost sixfold, Ethereum had nearly tripled, and Solana had seen a remarkable increase of around 1,800 percent in 2023 and 2024.

Volatility remained high in 2025, with cryptocurrency prices experiencing sharp fluctuations throughout the year. Bitcoin reached a new all-time high of over $126,000 in October before undergoing a significant correction towards the end of the year. Similarly, Ethereum narrowly missed the $5,000 mark in August before falling back to just over $2,600.

Despite the volatility, institutional demand for cryptocurrencies remained strong. Global investment inflows in digital asset products were close to a record high of $48.7 billion, with funds predominantly flowing into Bitcoin and Ethereum products. There was a noticeable shift towards Ethereum by large institutional investors, particularly in the summer months, with significant inflows into physically backed Ethereum ETNs, especially in Europe.

Bitcoin continued to dominate crypto ETN trading on the German stock exchange in 2025, with the largest turnover being recorded by Bitwise Physical Bitcoin. Additionally, in Vontobel’s derivatives trading, Bitcoin remained the focus of investor interest, with around two-thirds of transactions involving Bitcoin, followed by Ethereum and Solana.

Looking ahead to 2026, predictions vary widely within the cryptocurrency space. Factors such as US key interest rates, upcoming US midterm elections, deregulation pledges from US President Donald Trump, and institutional investor behavior could have a significant impact on the market. Despite differing opinions, many experts see potential for growth in cryptocurrencies, with some projecting price targets reaching as high as $240,000 for Bitcoin by the end of the year.

However, there are also cautious voices warning of potential risks, such as the end of the halving cycle and a general flight from highly speculative assets. Bank of America has advised caution, noting that the cooling of AI euphoria could impact cryptocurrencies like Bitcoin. Despite these risks, some financial institutions have started recommending cryptocurrencies as part of client portfolios.

In conclusion, the cryptocurrency market is expected to remain dynamic and unpredictable in 2026. Investors will need to stay vigilant and adapt to changing market conditions to capitalize on potential opportunities and mitigate risks in this evolving landscape.