Bitcoin Could Drop to $75,000 as Market Enters Downturn Phase in 2026

Source: CryptoNewsNet Original Title: Bitcoin could drop to $75,000 as market enters a downturn phase in 2026 Original Link: The cryptocurrency market appears to be headed for a lengthy rough patch, but this time around, things look different than previous crashes.

According to recent analysis, Bitcoin, currently trading at $87,660.94, is probably entering what traders call a crypto winter. The digital currency reached its high point about 85 days ago, and analysts think selling pressure might stick around for several more months. Prices could potentially drop to around $75,000.

What’s Different This Time

Unlike earlier downturns, this one is not expected to trigger the kind of widespread panic selling or company collapses that marked past market crashes. The key reason: big institutions have replaced everyday investors as the main players driving market moves.

What’s happening beneath the surface matters more than price charts right now. Activity in areas like decentralized finance, asset tokenization, and basic crypto infrastructure keeps expanding even while token values slide.

Tokenized Assets Triple to $18.5 Billion

This year, the total value of tokenized goods—including stocks, credit products, and U.S. Treasury securities—reached $18.5 billion, tripling from the previous year. As more financial institutions test blockchain-based settlement systems, projections suggest this amount will surpass $50 billion in the upcoming year.

Trading patterns are also changing. Decentralized exchanges, which enable users to transact without middlemen, are gaining market share. These decentralized venues are expected to continue growing even if overall trading declines along with Bitcoin prices in 2026, particularly for perpetual futures contracts where the technology is now more efficient and user-friendly.

Regulatory Clarity Driving Institutional Adoption

These changes are largely the result of new regulations. Recent legislation outlines the conditions under which digital assets are categorized as commodities rather than securities and grants regulatory authorities authority over spot cryptocurrency markets upon fulfillment of specific decentralization requirements.

With clearer legal guidelines, there should be fewer regulatory surprises that frighten markets. Investment firms and banks can now enter the market with greater confidence, while compliant decentralized platforms gain a clearer path forward.

Prediction Markets and Emerging Opportunities

Online prediction markets have expanded significantly, particularly for sports betting. Over $5.9 billion in volume has been recorded, with platforms like some major sports betting companies leading. Meanwhile, traditional finance companies are entering this space by providing more equitable systems based on order book technology.

The Road Ahead

The outlook isn’t without concerns. Bitcoin currently sits relatively close to recent support levels, and if prices fall significantly below key thresholds, it could rattle investor confidence. Digital asset trusts have also slowed their buying as both prices and premiums have tightened.

While rapid expansion may not materialize next year, the foundation being built—stronger infrastructure, clearer regulations, and greater participation from major institutions—appears more solid than in previous cycles.