Donald Trump has recently praised the influence of tariffs on pharmaceutical firms, suggesting that these measures have forced companies to comply with industry norms, while hinting at a pending major agreement. This strategy, alongside a forthcoming Supreme Court decision in January, holds the potential to positively impact inflation rates. If these policies continue to lead to lower rates, a further reduction in inflation is possible in the near future.
Are Cryptocurrencies on the Cusp of Transformation?
Coinbase Institutional has released a comprehensive report on the future of cryptocurrencies with a focus on projections for the year 2026. The report acknowledges the current challenges facing the year, such as market volatility and spotty liquidity. According to the analysts, 2025 will represent a pivotal period for cryptocurrencies as they enter a new era within the global market landscape.
A significant prediction for 2026 is the anticipated advancement in global cryptocurrency regulations. Presently, the U.S. has greenlighted GENIUS for stablecoins; however, all-encompassing legislation for the crypto sector is still pending. Expectations are to conclude draft regulations by the first quarter of 2026. Nonetheless, potential delays are possible, with midterm elections possibly affecting this timeline, a scenario Donald Trump is attempting to circumvent.
Estimates from experts suggest that stablecoins’ market capitalization could swell to $1.2 trillion by 2028.
How Will Bitcoin’s Market Dynamics Evolve?
Bitcoin has reached a newfound position among key assets, yet it’s beginning to show volatility patterns akin to technology stocks. The 90-day volatility of Bitcoin has dropped significantly, from above 60% last year to roughly 35% this year, impacted by the introduction of ETFs and escalating institutional involvement.
With Bitcoin maturing as an asset class, marked recognition came in 2025. BlackRock’s CEO identified Bitcoin as a “fear-priced asset.” It is increasingly integrated into investment portfolios, with financial institutions often recommending an allocation of 1-5%. While most advise staying below 3%, Bitcoin’s integration in institutional portfolios appears promising.
• A major regulatory framework expected in early 2026.
• Stablecoin market cap could hit $1.2 trillion by 2028.
• Bitcoin’s decreased volatility aligns it more closely with tech stocks.
• Future Fed rate cuts could be influenced by Trump’s policies.
Positive surprises in inflation and liquidity improvement could fuel notable growth in the crypto market. Should Bitcoin evade a severe dip in the first quarter of 2026, it may overcome the established narrative of cyclical crashes every four years. Investors waiting for a downturn might re-engage, leading to significant market shifts.
