Q1 2026 could usher in the next crypto bull run, thanks to Fed policy, interest rate cuts, liquidity, US Midterms, and the labor market.

US-listed spot Bitcoin ETFs attracted $457 million in net inflows on Wednesday, the largest daily total in more than a month. Fidelity's FBTC took in about $391 million and BlackRock's IBIT added roughly $111 million, lifting cumulative net inflows above $57 billion as institutions adjusted positioning amid changing US rate expectations.

On December 18, 2025, Bitcoin traded at $86,948.17 with a 57.6% dominance, according to Bitbo, after a 73‑day decline from its all‑time high pushed it into its most oversold state since 2023. Derivatives open interest sits near $27.4B, down from over $44B in early October, while repeated drops below $90,000 and swift sell‑offs suggest fragile sentiment.

On 18 Dec 2025, Itaú Asset Management, the investment arm of Brazil's largest private bank, outlined guidance for a 1% to 3% Bitcoin allocation in diversified client portfolios beginning in 2026. The firm frames Bitcoin as a separate risk bucket aimed at diversification, partial protection against Brazilian real depreciation, and exposure to potential long-term price appreciation.

Bitcoin is trading in a tight band between support near $85,000 and heavy sell orders above $87,000, with order-book liquidity concentrating at both levels. Analysts note that despite a recent 3,000 BTC transfer worth about $260 million into Binance and short-term supply concerns, long-term holders and corporate treasuries continue accumulating, helping keep price above key technical support.

Coinbase has obtained approval from India's Competition Commission to acquire a $2.45 billion minority stake in CoinDCX, strengthening its push into India and the wider Middle East. The deal follows CoinDCX's $44 million security breach in July and comes as Coinbase resumes direct operations in India after a two-year pause, with plans to add rupee deposits and fiat trading by 2026.

In a report released Wednesday, Bitwise said Bitcoin's price volatility in 2025 has fallen below Nvidia's, reflecting what it sees as a maturing market. The firm attributes the shift to the growth of spot ETFs and broader institutional adoption, and expects further institutional entry and a potential new all-time high for Bitcoin in 2026.

Norges Bank Investment Management, which oversees Norway's $2 trillion sovereign wealth fund, has given full support to all five of Metaplanet's management proposals ahead of the company's 22 December Extraordinary General Meeting. The Tokyo-listed firm plans to restructure its capital base, issue new preferred share classes, and potentially raise $150 million via MERCURY shares to fund additional Bitcoin purchases.