Crypto’s next phase puts selective exposure back in focus

CMC Markets Plc

The cryptocurrency market has entered 2026 in a more complex position than the enthusiasm of the last cycle might have suggested. Bitcoin attracted substantial institutional attention through 2024, helped in large part by the launch of spot Bitcoin ETFs, which broadened access and reinforced the idea that digital assets were moving closer to the financial mainstream. That shift continued into much of 2025, with bitcoin reaching new highs as ETF demand and institutional participation supported the market.

That combination of maturing access and persistent volatility is now central to the investment case. On one hand, the structure around crypto is becoming more recognisable to professional investors. On the other hand, the recent reversal has shown that macro conditions, liquidations and sentiment still exert considerable influence, even when the underlying market architecture looks stronger than before.

There is a growing view that the current weakness could form part of a broader reset within a more institutional phase for bitcoin, especially if prices establish a firmer base during the year. Policy developments in the US also remain relevant. The prospect of a Strategic Bitcoin Reserve based on seized holdings, alongside the possibility of a more supportive policy environment, introduces a potential catalyst that would matter not only for sentiment but also for how bitcoin is framed within portfolios. At the same time, a wide range of valuation outcomes remains possible, underlining that conviction in the asset class still depends heavily on macro stability and regulatory follow-through.

The broader opportunity set extends beyond bitcoin, but with a different risk profile. Ethereum continues to stand out as a leading smart contract blockchain, and its relevance to investors rests on the combination of network usage, ETF inflows, staking products and future upgrades designed to improve scalability. Its appeal is tied to whether activity on the network continues to deepen in ways that support long-term demand for the token. That makes it an asset where positioning depends on both adoption trends and execution risk.

Stablecoins such as Tether represent a different angle again. Their significance lies less in capital appreciation and more in their role as infrastructure within the crypto market. As a dollar-pegged token used for liquidity and settlement, Tether points to an area of the market that may become increasingly important if digital assets continue integrating with more conventional financial channels.

CMC Markets plc (LON:CMCX) is a UK-based financial services company that offers online trading in shares, spread betting, contracts for difference and foreign exchange across world markets. 

Share on:
Find more news, interviews, share price & company profile here for:

Latest Company News

Premier Miton UK Multi Cap Income Fund: Gervais Williams on the overlooked UK income stocks (video)

The Premier Miton UK Multi Cap Income Fund Co-Fund Manager explains why income growth, strong cash generation and undervalued smaller companies could become increasingly important, while highlighting opportunities in Victorian Plumbing, Personal Group, ACG Metals, PayPoint, Diversified Energy and CMC Markets.

Fed, Bank of Japan and UK inflation set up a crucial week for markets

Fed and Bank of Japan rate decisions, alongside UK inflation data, put currencies, gold and interest rate expectations in focus this week.

Oracle earnings put AI data centre expansion in focus as rate decisions loom

Oracle’s first-quarter results will put its AI data centre spending in focus as markets also prepare for an ECB rate decision and key US inflation data.

FTSE 100 and DAX face a tougher test as yields and energy costs rise

Higher bond yields, energy costs and inflation concerns are making European markets more selective, with capital shifting towards sectors seen as better positioned.

USD/CAD approaches a key technical test as trade tensions return

USD/CAD is testing important technical levels as oversold conditions, improving momentum and renewed US-Canada trade tensions raise the possibility of a rebound.

Fed minutes, Walmart earnings and UK inflation set the market agenda

Fed minutes, UK inflation and Walmart earnings put interest rates, currencies and consumer demand at the centre of this week’s market agenda.

Search