21Shares cuts 2026 crypto market forecasts
- 21Shares has lowered several 2026 cryptocurrency forecasts despite continued institutional adoption and improving market infrastructure.
- The asset manager said ETF holdings remain close to record highs, indicating institutions continue accumulating digital assets during market weakness.
- 21Shares expects prediction markets to surpass US$100 billion in annual trading volume while regulatory progress supports new crypto investment products.
21Shares said it has reduced several of its 2026 cryptocurrency forecasts despite continued institutional participation, citing weaker crypto prices, decentralised finance exploits and slower enterprise adoption.
The firm said Bitcoin (CRYPTO:BTC) reached about US$126,000 in October 2025 before entering a correction that has largely followed historical post-halving cycles, although institutional ownership has reduced the severity of market drawdowns.
21Shares said exchange-traded fund holdings remain above 1.25 million Bitcoin despite about US$3 billion in net outflows from U.S. spot Bitcoin ETFs this year, suggesting many institutional investors have maintained or increased their positions.
The report also forecast that prediction markets will exceed US$100 billion in annual trading volume this year while consolidation accelerates among crypto treasury companies and Ethereum layer-2 networks.
According to 21Shares, improving regulatory clarity in the United States continues to support new investment products, with the Securities and Exchange Commission's generic listing standards helping expand approvals beyond Bitcoin and Ether investment funds.
The firm said recent market volatility has been influenced by stronger U.S. inflation data and expectations of higher interest rates, although some institutions continue maintaining long-term cryptocurrency price targets.
Looking ahead, 21Shares said continued growth in tokenisation, stablecoin regulation, prediction markets and institutional infrastructure is expected to support broader digital asset adoption despite reducing several market forecasts.
At the time of reporting, Bitcoin price was $59,740.05.
