Bitcoin (CRYPTO: BTC) could rally to $90,000 by the end of 2026 as rising government debt, persistent inflation and a global bond market selloff strengthen its appeal as an alternative store of value.
In a Cointelegraph interview on Thursday, 10x Research founder Markus Thielen argued that these factors encourage investors to move away from traditional fixed-income assets.
Government debt growing nearly 8% annually makes bonds yielding 4%-5% less attractive, potentially boosting demand for Bitcoin and gold.
With U.S. debt nearing $40 trillion and $8 trillion in money market funds, Thielen sees substantial liquidity available for investment.
He also dismissed concerns that major OpenAI and Anthropic IPOs would drain crypto liquidity, arguing they could instead attract more capital into growth assets.
Can Bitcoin Reach $90,000 Before 2027?
Thielen compared Bitcoin’s current structure to early 2023, citing improving weekly RSI readings and higher lows as signs of a new bull market.
While Bitcoin could briefly retreat into the $70,000s, he expects a recovery toward $90,000 by year-end, potentially supported by a more cautious Federal Reserve.
He noted that growing institutional participation has reduced Bitcoin’s volatility toward 30%, compared with historical levels of 60%-80%.
This suggests future rallies may involve sharp repricing followed by consolidation.
Although quantum computing concerns could weigh on sentiment, Thielen sees macroeconomic conditions as the bigger driver of Bitcoin’s outlook.
Why Could Bitcoin Outperform Ethereum?
Thielen expects Bitcoin to outperform Ethereum (CRYPTO: ETH), arguing that growing Layer-2 activity has weakened its fee generation and value capture for ETH holders.
He contrasted this with Hyperliquid (NASDAQ:PURR), which attracts investors through revenue generation and token buybacks.
While acknowledging Ethereum’s importance, Thielen remains cautious until stronger network activity translates into sustainable value for the asset holders.
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