The Bitcoin market is currently undergoing a structural rebalancing, moving away from short-term speculative volatility toward institutional-grade asset accumulation. 1. Shift in Ownership Structure Retail to Institutional: The market is transitioning to a "Treasury Phase." Digital asset treasury companies and institutional funds are aggressively buying dips, creating a higher price floor. HODL Conviction: Investors who have held for >5 years show no signs of mass distribution, signaling deep-rooted confidence in BTC’s long-term value proposition. 2. The Hash Rate "Reset" (December 2025) The network is currently seeing its most significant hash rate drop since April 2024. The Cause: Likely a combination of regulatory shifts in high-hash-rate jurisdictions and the capitulation of inefficient miners. The Bullish Divergence: Historically, price follows hash rate with a lag. A decline in hash rate often flushes out "weak" miners, leading to a leaner, more profitable ecosystem and price appreciation within 90–180 days. 3. Macro Projections for 2026 The Federal Reserve remains the primary "external" driver for Bitcoin's price action:
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#CryptoMarketMildlyRebounds 🪙 Bitcoin Market Structural Analysis (2025–2026)
The Bitcoin market is currently undergoing a structural rebalancing, moving away from short-term speculative volatility toward institutional-grade asset accumulation.
1. Shift in Ownership Structure
Retail to Institutional: The market is transitioning to a "Treasury Phase." Digital asset treasury companies and institutional funds are aggressively buying dips, creating a higher price floor.
HODL Conviction: Investors who have held for >5 years show no signs of mass distribution, signaling deep-rooted confidence in BTC’s long-term value proposition.
2. The Hash Rate "Reset" (December 2025)
The network is currently seeing its most significant hash rate drop since April 2024.
The Cause: Likely a combination of regulatory shifts in high-hash-rate jurisdictions and the capitulation of inefficient miners.
The Bullish Divergence: Historically, price follows hash rate with a lag. A decline in hash rate often flushes out "weak" miners, leading to a leaner, more profitable ecosystem and price appreciation within 90–180 days.
3. Macro Projections for 2026
The Federal Reserve remains the primary "external" driver for Bitcoin's price action: