Bitcoin 2026 Valuation Argument: Institutional Adoption Turning Point Under Liquidity Reasoning

Bitcoin recently rebounded after falling below $87,000, with current trading around $91,990, up 1.39% over the past 24 hours. Despite short-term volatility triggering market panic, Strategy CEO Phong Le remains optimistic about Bitcoin’s development prospects in 2026. Within the framework of liquidity reasoning, he believes that the current market correction is actually a necessary adjustment before the establishment of a larger trend.

Beyond Price Fluctuations: The Three Pillars Supporting Bitcoin in 2026

Le positions Bitcoin as “the future financial infrastructure” rather than a traditional asset. This difference in perception determines how investors interpret market volatility. According to his analysis, Bitcoin’s growth toward 2026 is primarily driven by three forces:

First is the shift in the monetary policy environment. As global central banks’ monetary policy expectations turn dovish, risk assets will receive liquidity support. Second is the resonance effect of political cycles. Midterm election seasons typically stimulate investors to increase risk appetite, creating demand for alternative assets. Lastly—and most critically—is the large-scale adoption by institutions. Traditional banks, state governments, and corporate funds entering the crypto market are essentially injecting systemic liquidity and legitimacy into Bitcoin.

How Institutional Adoption Waves Reshape Bitcoin’s Market Structure

Le emphasizes that, unlike previous retail-led speculative cycles, Bitcoin’s growth in 2026 will be driven by institutional adoption. What does this mean?

A qualitative change in liquidity depth—when traditional financial institutions establish Bitcoin positions, they bring not only capital but also stability to holdings. Compared to retail investors’ high turnover, institutional investors tend to hold longer, directly improving Bitcoin market liquidity characteristics.

A shift in value perception—adoption by banks signifies clearer regulatory frameworks and reduced risk premiums. Assets once seen as “high-risk speculative instruments” are gradually evolving into “risk management tools.”

A reorganization of the global financial system—Bitcoin moving from a fringe asset to a mainstream portfolio component marks a micro-level transformation of the global financial architecture. This shift will continue to accelerate through 2026 and beyond.

The True Meaning of Recent Corrections

Bitcoin’s retracement from its high to $87,000, followed by a rebound to $91,990, may seem dramatic but actually reflects a process of market restructuring. Le’s view is that such corrections often occur on the eve of major upward phases.

Historical data shows that whenever fundamental adoption indicators (on-chain active addresses, institutional holdings ratio, regulatory progress at the national level) continue to strengthen, price corrections tend to serve as mechanisms to filter long-term holders. Short-term bearish traders are shaken out, while steadfast strategic investors accumulate during volatility.

Bitcoin’s Unique Value Proposition

Why is Le so confident about 2026? The core lies in Bitcoin’s unique features that other assets cannot replicate:

• Decentralized governance structure—not controlled by any single entity, rules determined by consensus
• Verifiable scarcity—a cap of 21 million coins embedded in the protocol, unchangeable and inflation-proof
• Global accessibility—no bank permission needed, anyone can participate
• Cross-border value transfer—breaking through traditional financial geographic and temporal limitations

These features combine to create a new asset class—possessing both the store of value characteristics of gold and the liquidity potential of currency, with growth space akin to tech stocks.

Investment Logic for Bitcoin in 2026

Le believes that the key to investing in Bitcoin until 2026 is not predicting short-term prices but recognizing the ongoing strengthening of fundamentals:

Policy level: The Fed’s rate-cut cycle will boost risk asset attractiveness, and improved liquidity environments will directly benefit Bitcoin.

Mechanism level: Approval of spot Bitcoin ETFs in multiple countries lowers technical barriers for institutional entry. Traditional portfolio managers can now allocate Bitcoin as they do gold.

Market level: On-chain data shows continued accumulation by long-term holders, with increasing large address counts, indicating a gradual bottoming of prices.

Volatility Calls for Perspective Adjustment, Not Panic Selling

Li explicitly states in an interview that volatility itself is not a risk signal but a normal process of market price discovery. Investors targeting 2026 should:

1. Shift focus from daily charts to monthly and yearly charts
2. Pay attention to progress in institutional adoption rather than short-term price swings
3. During corrections, moderately increase positions rather than panic-sell
4. View Bitcoin as a core component of long-term asset allocation rather than a trading tool

Risk Factors and Practical Considerations

Although Le remains optimistic about long-term prospects, he admits uncertainties exist. Potential negative factors include:

• Regulatory surprises: Governments may implement restrictive policies
• Technical bottlenecks: Scalability issues remain unresolved
• Macroeconomic downturn: Economic crises could lead to declines across all risk assets
• Delayed institutional adoption: Corporate and banking entry may proceed slower than expected

However, Le concludes that these risks are unlikely to negate Bitcoin’s strategic position as future financial infrastructure. Even in the face of short-term setbacks, the long-term trend remains clear.

Conclusion: Viewing 2026 Bitcoin Through Liquidity Reasoning

The argument for Bitcoin in 2026 is not based on optimism bias but on liquidity reasoning and objective changes in institutional structure. As global liquidity conditions loosen, institutional investors enter en masse, and regulatory frameworks improve gradually, Bitcoin’s market structure will undergo a fundamental transformation.

From the current price of $91,990, whether relative to historical highs or potential future space, Bitcoin remains in a strategic accumulation phase. For investors who believe in the Bitcoin 2026 narrative, recent price corrections should not be seen as warning signals but as normal fluctuations within a systemic restructuring process.

In the coming years, the integration of traditional finance and digital assets will accelerate, with Bitcoin as the core asset of this transition. Its role will only expand, not diminish.