(C) Watcher Guru

As the digital asset market moves toward a new era defined by regulatory clarity, institutional integration, and synergy with Artificial Intelligence (AI), major global investment banks are issuing bullish forecasts for 2026. JPMorgan has projected that Bitcoin (BTC) could soar to the $170,000 mark, while Citigroup set its target price at $143,000.

Gold-Like Status and Institutional Capital
According to a report released by JPMorgan on December 31, Bitcoin is increasingly being recognized as a "digital gold," serving as a critical store of value and a hedge against inflation. The bank noted that as the market stabilizes, Bitcoin’s trajectory could reach as high as $170,000 within the coming year.

A key factor in this valuation is the shift in market participants. Analysts expect the market to evolve from one driven by speculative retail trading to one supported by long-term capital inflows from institutional investors. However, JPMorgan also highlighted short-term risks, specifically pointing to MicroStrategy (MSTR). As the world’s largest corporate holder of Bitcoin, MicroStrategy's recent stock price volatility has sparked concerns regarding whether the firm will maintain its massive holdings or be forced to liquidate.

Catalysts for Growth: Regulation and AI
Citigroup supported this optimistic outlook, setting a target of $143,000. The bank identified the recovery in Spot Bitcoin ETF demand, the continued strength of global equity markets, and the ongoing legislative efforts in the United States to formalize digital asset laws as the primary catalysts for the upcoming rally.

Industry experts are focusing on three core pillars for 2026: Regulation, Financialization, and AI. In its "2026 Market Outlook," Coinbase Institutional emphasized that the transition toward a structured regulatory environment and the increasing integration of AI within the blockchain ecosystem will be the defining themes of the year.

As digital assets become a legitimate component of the traditional financial system, the "speculative" label is rapidly being replaced by "institutional asset class," setting the stage for a potential record-breaking year in 2026.