3 Reasons Bitcoin's Growth May Continue into 2026 and Beyond

This year, Bitcoin (CRYPTO: BTC) may only increase by 13%. But let's take a closer look at the context: Almost all of the world's leading cryptocurrencies have fallen by double digits this year, and Bitcoin has clearly separated itself from the rest. If you are thinking about investing in Bitcoin, the good news is that this growth momentum is likely to continue into 2026. Here are three reasons. The support for Bitcoin from the Trump administration The clearest reason, of course, is the support of the Trump administration. President Donald Trump took office this year with a promise of a pro-crypto agenda and he has delivered on that. A major move took place in March when he announced the establishment of a strategic Bitcoin reserve fund. Currently, the major focus is on the new cryptocurrency law that will further legalize the role of cryptocurrency in the U.S. economy. The new stable cryptocurrency law is likely to be signed by the end of this summer. Next will be comprehensive cryptocurrency market reform legislation. This could also be ready by the time Congress breaks in August. Bitcoin has become popular and the support of both parties in Washington, DC will help banks, corporations, and institutional investors more easily buy and hold cryptocurrency. Theoretically, this means that Bitcoin could continue to increase in value from now until 2028. The emergence of Bitcoin treasury companies The next key factor is the emergence of Bitcoin fund companies. Since Strategy announced it would convert into a Bitcoin fund company in February, a slew of imitation companies has followed. It seems that everyone is buying Bitcoin this year. And when I say "everyone", I mean everyone. Medical device companies are buying Bitcoin. Media companies are buying Bitcoin. Luxury watch manufacturers are buying Bitcoin. At the same time, investors are using every form of financial alchemy possible - from reverse mergers to special purpose acquisition companies (SPAC) - to create new companies that do nothing but buy Bitcoin. On the surface, this seems like a timely thing to do: buying Bitcoin because everyone else is buying Bitcoin. But, as they say, always follow the money. And the trail of money leads straight to FASB ASU 2023-8. This is a somewhat obscure accounting rule from the Financial Accounting Standards Board (FASB) that dates back to December 2023, allowing companies to mark for marketing the cryptocurrency assets they hold on their balance sheets. This rule will take effect in December 2024, so we will see the impact in 2025. Previously, companies could only mark for marketing their cryptocurrency holdings if they sold these assets. Unless you are an accountant, this may not seem like a big deal until you realize its potential impact on shareholder value. If Bitcoin skyrockets in value, it means your company -- if it chooses to buy and hold Bitcoin -- will also skyrocket in value. For example, earlier this year, Tesla was able to record a profit of $600 million, simply due to the Bitcoin the company holds on its balance sheet. Sovereign governments will be the next to adopt Bitcoin. So far, sovereign governments have remained relatively silent when it comes to Bitcoin. But this may soon change. Last year, many expected government investment funds to take the lead. However, by 2025 and beyond, it seems that strategic Bitcoin reserve funds will take the lead. To keep up with the United States, some governments around the world have announced plans to launch their own strategic Bitcoin reserve funds. The most prominent among them is Brazil. And, in the United States, three states have approved the creation of their own strategic Bitcoin reserve funds, with many other funds being rolled out. The big question, of course, is how much Bitcoin these strategic reserve funds will buy. According to Michael Saylor, the founder and CEO of Strategy, the U.S. government should plan to purchase 20% of the total Bitcoin supply in the world. That is a very large amount of Bitcoin. Clearly, this kind of buying pressure will only push Bitcoin higher. What to look for next Based on the information above, it is quite easy to draft an unofficial schedule for what will happen next in 2025 and 2026. This summer, look for new cryptocurrency laws being signed into law. In the fall, look for a major corporation -- likely a tech giant in Silicon Valley -- to announce plans to add Bitcoin to its balance sheet. And, this winter, look for signs of an impending "Bitcoin arms race," as countries around the world compete to buy as much Bitcoin as possible. As a Bitcoin investor, it will be very interesting to sit back and watch. Indeed, Bitcoin seems to be priced up to the stratosphere right now. But wait a few more years, and a small investment in Bitcoin right now could become the best investment you've ever made.