Epoch, a enterprise agency specializing in Bitcoin infrastructure, issued its second annual ecosystem report on January 21, 2026, forecasting sturdy development for the asset regardless of a subdued 2025 efficiency.
The 186-page doc analyzes Bitcoin’s worth dynamics, adoption traits, regulatory outlook, and technological dangers, positioning the cryptocurrency as a maturing financial system. Key highlights embody a prediction that Bitcoin will attain at the very least $150,000 USD by year-end, pushed by institutional inflows and decoupling from equities. The report additionally anticipates the Readability Act failing to move, although its substance on asset taxonomy and regulatory authority could advance by way of SEC steering. Extra forecasts cowl gold rotations boosting Bitcoin by 50 p.c, main asset managers allocating 2 p.c to mannequin portfolios, and Bitcoin Core sustaining implementation dominance.
Eric Yakes, CFA charterholder and managing accomplice at Epoch Ventures, brings over a decade of finance experience to the Bitcoin house, having began his profession in company finance and restructuring at FTI Consulting earlier than advancing to non-public fairness at Lion Fairness Companions, the place he centered on buyouts. He left conventional finance in recent times to immerse himself in Bitcoin, authoring the influential ebook “The seventh Property: Bitcoin and the Financial Revolution,” which explores Bitcoin’s function as a transformative financial asset, and has since written extensively on its applied sciences and ecosystem. Yakes holds a double main in finance and economics from Creighton College, positioning him as a key voice in Bitcoin enterprise capital by way of Epoch, a agency devoted to funding Bitcoin infrastructure.
The Dying of the 4-12 months Cycle
Bitcoin closed 2025 at $87,500, marking a 6 p.c annual decline however an 84 p.c four-year achieve that ranks within the backside 3 p.c traditionally. The report states the demise of the 4-year cycle in no unsure phrases: “We imagine cycle idea is a relic of the previous, and the cycles themselves in all probability by no means existed. The actual fact is that Bitcoin is boring and rising step by step now. We make the case for why gradual development is exactly what is going to drive a ‘step by step, then abruptly’ second.”
The report goes on to debate cycle idea in depth, presenting a view of the long run that’s turning into the brand new market expectation: much less volatility to the draw back, sluggish and regular development to the upside.
Value motion suggests a brand new bull market commenced in 2026, with 2025’s drop from $126,000 to $81,000 doubtlessly being a self-fulfilling prophecy resulting from cycle expectations, as RSI remained under overbought since late 2024, suggesting bitcoin already went by way of a bear market and we’re commencing a brand new sort of cycle.
Versus gold, Bitcoin is down 49 p.c from its highs, in a bear market since December 2024. Gold’s meteoric rise presents a possible worth catalyst for bitcoin; a small rebalancing reallocation from gold of 0.5% would induce larger inflows than the U.S. ETFs; at 5.5%, it might equal bitcoin’s market capitalization. Gold’s rise makes bitcoin extra enticing on a relative foundation, and the upper gold goes, the extra probably a rotation into bitcoin. Timing evaluation, as seen within the chart under, which counts days from the native prime, suggests Bitcoin may be nearing a backside versus Gold.
By way of volatility bitcoin has aligned with mega-caps like Tesla, with 2025 averages for Nasdaq 100 leaders exceeding Bitcoin’s, suggesting a risk-asset decoupling and limiting drawdowns. Lengthy-term inventory correlations persist, however maturing credit score markets and safe-haven narratives could pivot Bitcoin towards gold-like habits.
The report goes in-depth into different potential catalysts for 2026, defending its bullish thesis, resembling:
- Constant ETF Inflows
- Nation State Adoption
- Mega-cap Firms Allocating to Bitcoin
- Wealth Managers Allocating Purchasers
- Inheritance Allocation
FUD, Sentiment and Media Evaluation
Evaluation of 356,423 datapoints from 653 sources reveals a fractured sentiment panorama, with “Bitcoin is lifeless” narratives concluded. FUD is secure at 12-18 p.c however the subjects rotate, crime and authorized themes are up 277 p.c, whereas environmental FUD is down 41 p.c.
A 125-point notion hole exists between convention attendees (+90 optimistic) whereas tech media is usually unfavorable at (-35). UK retailers present 56-64 p.c negativity, 2-3 occasions worldwide averages.
The Lightning Community protection dominates podcasts at 33 p.c however garners solely 0.28 p.c mainstream protection, a 119x disparity. Layer 2 options are usually not zero-sum, with Lightning at 58 p.c mentions and Ark up 154 p.c.
Media framing has induced mining sentiment to swing 67 factors: mainstream retailers cowl the sector at 75.6 p.c optimistic, whereas Bitcoin communities view it at solely 8.4 p.c optimistic, underscoring the significance of narrative and viewers credibility for mining corporations.
Bitcoin Treasury Firms
Extra corporations added Bitcoin to their stability sheets in 2025 than in any earlier 12 months, marking a significant step in company adoption. Established corporations that already held Bitcoin—often known as Bitcoin treasury corporations, or BtcTCs—purchased even bigger quantities, whereas new entrants went public particularly to boost cash and buy Bitcoin. In response to the report, public firm bitcoin holdings elevated 82% y/y to ₿1.08 million and the variety of public corporations holding bitcoin grew from 69 to over 191 all through 2025.65 Firms personal at the very least 6.4% of complete Bitcoin provide – public corporations 5.1% and personal corporations 1.3%. This created a transparent boom-and-bust sample all year long.
Firm valuations rose sharply by way of mid-2025 earlier than pulling again when the broader Bitcoin worth corrected. The report explains that these public treasury corporations supply buyers simpler entry by way of conventional brokers, the power to borrow in opposition to holdings, and even dividend funds, although with dilution dangers. In distinction, shopping for and holding Bitcoin instantly stays easier and preserves the asset’s full shortage.
Wanting forward, Epoch expects Japan’s Metaplanet to put up the best a number of on web asset worth (mNAV)—a key valuation metric—amongst all treasury corporations with a market cap above $1 billion. The agency additionally predicts that an activist investor or rival firm will pressure the liquidation of 1 underperforming treasury agency to seize the low cost between its share worth and the precise worth of its Bitcoin holdings.
Over time, these corporations will stand out by providing aggressive yields on their Bitcoin. In complete, treasury corporations acquired roughly 486,000 BTC throughout 2025, equal to 2.3 p.c of all the Bitcoin provide, drawing additional company curiosity in Bitcoin. For enterprise homeowners contemplating a Bitcoin treasury, the report highlights each the expansion potential and the dangers of public-market volatility.
The Bitcoin Treasury Firms part of the report explores:
- The basics of a Bitcoin treasury allocation together with the potential advantages and dangers of Bitcoin treasury firm investing.
- The 2025 timeline of Bitcoin Treasury corporations.
- Present valuations of BtcTCs.
- Our opinion on BtcTCs broadly, and the way we view them in comparison with proudly owning Bitcoin instantly.
- Commentary on particular BtcTCs.
- Predictions on Bitcoin treasury corporations within the coming years.
Regulation Expectations for 2026
Epoch predicts the Readability Act—a proposed invoice to make clear digital asset oversight by dividing authority between the SEC and CFTC—won’t move Congress in 2026. Nonetheless, the report expects the invoice’s most important concepts, together with clear definitions for asset classes and regulatory jurisdiction, to advance by way of SEC rulemaking or steering as an alternative. The agency additionally forecasts Republican losses within the midterm elections, which may set off new regulatory strain on crypto, almost certainly within the type of client safety measures geared toward perceived business dangers. On high-profile authorized instances, Epoch doesn’t anticipate pardons for the founders of Samurai Pockets or Twister Money this 12 months, although future authorized appeals or associated proceedings could finally help their defenses.
The report takes a essential view of latest legislative efforts, arguing that payments just like the GENIUS Act (centered on stablecoins) and the Readability Act prioritize business lobbying over the considerations of on a regular basis Bitcoin customers, particularly the power to carry and management property instantly with out third-party interference (self-custody).
The report factors out a discrepancy between what crypto-owning voters need — a majority preferring above all, the suitable to transact. Whereas the Readability and Genius Acts concentrate on much less well-liked particular pursuits, they simply fall inside the 50% help vary. Epoch warns that “This deviation between the desire of the voters and the desire of the biggest business gamers is an early warning signal of the potential hurt from regulatory seize (intentional or in any other case)”.
The report is especially essential of the best way the GENIUS Act arrange the regulatory construction for stablecoins. The paragraph on the subject is so poignant that it deserves being printed in its entirety:
“Meet the brand new boss, identical because the previous boss:
Final 12 months, in our Bitcoin Banking Report, we mentioned the construction of the 2-tier banking system within the US (see determine under). On this system, the Central Financial institution pays a yield on the deposits it receives from the Tier II Business banks, who then go on to share a portion of that yield with their depositors. Sound acquainted?
The compromise construction within the GENIUS Act primarily creates a parallel banking system the place stablecoin issuers play the function of Tier I Central Banks and the crypto exchanges play the function of Tier II Business Banks.
To make issues worse, stablecoin issuers are required to maintain their reserves with regulated Tier II banks and are unlikely to have entry to Fed Grasp accounts. The upshot of all that is that the GENIUS act converts a peer-to-peer fee mechanism right into a closely intermediated fee community that sits on prime of one other closely intermediate fee community.”
The report goes into additional depth on subjects of regulation and regulatory seize threat, closing the subject with an evaluation of how the CLARITY Act may and, of their opinion, ought to take form.
Quantum Computing Threat
Considerations about quantum computing doubtlessly breaking Bitcoin’s cryptography surfaced prominently in late 2025, partly contributing to institutional sell-offs as buyers reacted to headlines about speedy advances within the discipline. The Epoch report attributes a lot of this response to behavioral biases, together with loss aversion—the place individuals worry losses greater than they worth equal positive factors—and herd mentality, during which market contributors comply with the gang with out impartial evaluation. The authors describe the perceived risk as considerably overhyped, noting that claims of exponential progress in quantum capabilities, usually tied to “Neven’s Legislation,” lack stable observational proof so far.
“Neven’s legislation states that the computational energy of quantum computer systems will increase at a double exponential fee of classical computer systems. If true, the timeline to interrupt Bitcoin’s cryptography may very well be as quick as 5 years.
Nonetheless, Moore’s legislation was an commentary. Neven’s legislation is just not an commentary as a result of logical qubits are usually not rising at such a fee.
Neven’s legislation is an expectation of specialists. Primarily based on our understanding of professional opinion within the fields we’re educated about, we’re extremely skeptical of professional projections,” the Epoch report defined.
They add that present quantum computer systems haven’t succeeded in factoring numbers bigger than 15, and error charges improve exponentially with scale, making dependable large-scale computation removed from sensible. The report argues that progress in bodily qubits has not but translated into the logical qubits or error-corrected methods wanted for factorization of the massive numbers underpinning Bitcoin’s safety.
Implementing quantum-resistant signatures prematurely — which do exist — would introduce inefficiencies, consuming extra block house on the community, whereas rising schemes stay untested in real-world situations. Till significant advances in factorization happen, Epoch concludes the quantum risk doesn’t warrant rapid precedence or community adjustments.
Mining Expectations
The report forecasts that no firm among the many prime ten public Bitcoin miners will generate greater than 30 p.c of its income from AI computing providers in the course of the 2026 fiscal 12 months. This end result stems from important delays within the growth and deployment of the required infrastructure for large-scale AI workloads, stopping miners from pivoting as shortly as some market narratives urged.
Media protection of Bitcoin mining reveals a stark divide relying on who’s framing the dialogue. Mainstream retailers are likely to painting the business positively—75.6 p.c of protection is favorable, usually emphasizing power innovation, job creation, or financial advantages—whereas conversations inside Bitcoin communities stay way more skeptical, with solely 8.4 p.c optimistic sentiment. This 67-point swing in web positivity highlights how framing and viewers form perceptions of the identical sector, with neighborhood credibility remaining a essential issue for mining corporations searching for to keep up help amongst Bitcoin holders.
The report has much more to supply together with evaluation of layer two methods and Bitcoin adoption knowledge on a number of fronts, it may be learn on Epoch’s web site without spending a dime.
