Prominent crypto analyst Miles Deutscher outlined several themes he expects to shape digital asset markets in 2026, along with his outlook for Bitcoin’s (CRYPTO: BTC) price by year-end.
What Happened: Deutscher said prediction markets are poised for significant growth, with monthly volumes potentially reaching five times current levels, or about $95 billion, during at least one month in 2026.
He attributed the expected surge to new product formats, including leveraged prediction markets.
He also identified crypto-native and stablecoin-focused neobanks as a potential breakout sector.
According to Deutscher, improving infrastructure and rising demand, particularly in developing markets, are pushing these platforms toward an inflection point.
Given their large addressable market, he said neobanks could become one of crypto’s fastest-growing verticals.
Deutscher expects stablecoin supply to expand by 50% or more after growing from roughly $200 billion to $300 billion last year.
He said clearer U.S. regulation, including the passage of the GENIUS Act, could further accelerate adoption.
Institutional participation is another dominant theme, with market moves increasingly driven by ETFs, regulated investment products and real-yield protocols.
Deutscher sees shift favoring projects generating real revenue and catering to institutional demand.
On Bitcoin, he said a parabolic “blow-off” move is not guaranteed, but his base case is for BTC to finish 2026 higher than it began.
He expects Bitcoin to close the year above the $90,000 range, supported by late-cycle dynamics and historically familiar bottoming behaviour.
Why It Matters: Despite Bitcoin maintaining a long-term uptrend marked by higher highs and higher lows through 2024 and 2025, retail sentiment has deteriorated during recent pullbacks.
CryptoQuant data shows that data from the Short-Term Holder Spent Output Profit Ratio shows many retail investors have been selling at a loss for roughly the past 70 days, with the indicator hovering near 0.98, levels last seen during periods of extreme fear in late 2022.
The divergence suggests a familiar pattern in which short-term holders capitulate during corrections even as Bitcoin’s broader price structure remains intact.
Historically, such disconnects between retail fear and underlying trend strength have often preceded renewed upside rather than trend reversals.
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