An expert predicts a potential Bitcoin bubble in 2026 will be significantly larger than the one seen in 2017, suggesting a shift from speculative enthusiasm to widespread concern.

Shifting Market Dynamics

A prominent analyst suggests digital assets are transitioning from a greed-driven cycle to a "fear bubble," anticipating a significant Bitcoin rally potentially exceeding the 2017 surge. Dominant market drivers are now anxieties surrounding monetary debasement and artificial intelligence, motivating investment decisions more out of fear than hope. This shift represents a notable change in investor psychology and market behavior.

Policy and Economic Influences

Anticipated policy actions under the current administration are expected to fuel this rally, including potential rate cuts, Treasury issuance adjustments, and stimulus measures. These interventions aim to cushion the bond market, stimulate housing, and provide direct financial support. The analyst emphasizes a “two-speed economy” where asset owners prosper while broader economic indicators remain weaker, justifying continued stimulus.

Bitcoin's Trajectory & Outlook

The analyst foresees a phased Bitcoin rally: an initial strength in Q4, followed by a market correction linked to cycle debates, culminating in a powerful rebound. He acknowledges the possibility of "truly manic" vertical price days, similar to the frenetic stage of the 2017 rally but driven by defensive fear. The overall thesis centers on fear-led, policy-fueled asset price acceleration.

Strategic Portfolio Adjustments

The analyst recommends maintaining a "long" position over the next year, but suggests carefully shifting portfolio composition between gold, Bitcoin, and stocks. He highlights the importance of recognizing both macro dispersion and the potential for market drawdowns while aiming for a higher peak. This reflects a nuanced approach considering both opportunities and risks.