August 12, 2026
Bitcoin’s price has begun to stabilize, and we may be nearing the end of the latest bear market. Regardless of how the short-term price action plays out, we see a few key reasons why Bitcoin adoption can continue rising over the medium- and longer-terms (Exhibit 1):
1. Unchecked government deficits: continued unsustainable government debt growth raises the risk of persistent inflation and currency debasement, and could drive increasing numbers of investors of all types to scarce assets and alternative stores of value.
2. Adoption of blockchain technology: stablecoins and tokenization will make blockchains ubiquitous across financial services, in our view. As the spread of the technology continues, many more intermediaries will have the necessary infrastructure (and regulatory clarity) to transact and store balances in Bitcoin—it will no longer be structurally apart from the rest of the financial system.
3. Generational change in portfolio construction: younger investors have a much bigger appetite for digital assets, and alternatives are now a standard part of portfolios. We expect institutions, wealth management platforms, and individuals to continue incorporating Bitcoin into diversified portfolios through exchange-traded products (ETPs) and other vehicles—a process already well underway.
Key Takeaway: The Bitcoin bear market has not changed our expectation for rising Bitcoin adoption over time. We believe that adoption will be driven by more demand for scarce assets, greater adoption of blockchain technology, and generational change in portfolio construction.
Exhibit 1: The number of Bitcoin holders continues to rise
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