VanEck 2026 Outlook: This Round of BTC Downside Potential Limited, 2026 Likely to Be a Year of Consolidation

By: theblockbeats.news|2026/01/03 03:16:11

BlockBeats News, January 3rd, VanEck's Director of Digital Assets, Matthew Sigel, stated in the 2026 Outlook that digital assets are showing a complex but positive signal at the start of 2026. Bitcoin fell by about 80% in the previous cycle, but the actual volatility has since dropped by almost half, indicating that the corresponding magnitude of this round of decline may decrease to around 40%. The market has currently absorbed about 35% of the decline.

At the same time, the four-year cycle pattern of Bitcoin's history (often peaking in the window period after the U.S. election) remained valid after the high point in early October 2025. This pattern suggests that 2026 is more likely to be a year of consolidation rather than a sharp rise or a crash.

In 2026, global liquidity is mixed, with rate cut expectations providing support, but U.S. liquidity has slightly tightened due to the collision of AI-driven capital expenditure boom and a fragile funding market, leading to an expansion of credit spreads. The leverage ratio in the crypto ecosystem has been reset after multiple washouts. On-chain activity, while still weak, is showing signs of improvement.

Matthew Sigel suggested that against this backdrop, it is advisable to establish a disciplined 1% to 3% Bitcoin allocation through a dollar-cost averaging strategy, increase holdings during leverage liquidations, and reduce holdings when the market is overheated with speculation.

Imagine checking Bitcoin and Ethereum prices in a day — one minute up 5%, the next down 4%. Sharp moves, quick reversals, and sensitivity to macro signals marked the first week of 2026. After an early-year rally, both assets pulled back as markets recalibrated expectations around U.S. monetary policy and institutional flows. For traders — including those relying on AI or automated systems — this period offered a vivid reminder: abundant signals do not guarantee clarity. Staying disciplined in execution is often the real challenge.

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