Bitcoin Braces for 'Massive Trigger' — Could Trillions Flood the Market?

Bitcoin has entered 2026 under pressure following a volatile year that saw sharp price swings and a significant fall from previous highs. After peaking near $126,000 in late 2025, the cryptocurrency dropped roughly 50%, reflecting a broader cooling in the crypto market.

Recent weeks have continued to show instability. Analysts say sentiment remains mixed despite renewed institutional and regulatory discussions, with markets now focused on potential legislative developments in the United States.

Regulation Takes Centre Stage

Attention has increasingly shifted toward the proposed crypto market structure legislation known as the Clarity Act. The bill aims to establish clearer regulatory frameworks for digital assets, a move many industry figures believe could shape the next phase of the crypto market.

Prediction platform Polymarket recently showed rising confidence in the bill's passage, with odds reportedly climbing as high as 90% before settling closer to 70%. The surge reflects growing expectations that regulatory clarity could arrive sooner than previously anticipated.

Venture capitalist Michaël van de Poppe described the legislation as a 'massive trigger' for crypto markets, highlighting optimism among some investors that regulatory progress could drive renewed activity.

Institutional Capital and Market Expectations

Several industry voices have argued that regulatory clarity could unlock significant institutional participation. Investor Kevin O'Leary said that large pools of capital remain on the sidelines primarily due to compliance uncertainty, suggesting that clear frameworks could bring substantial inflows.

Recent meetings between White House officials and representatives from crypto and banking sectors have been described as constructive. Discussions have reportedly focused on unresolved issues within the Clarity Act, including stablecoin-related provisions and broader market structure rules.

Executives across the crypto industry have expressed cautious optimism that a workable compromise may emerge. Ripple CEO Brad Garlinghouse said he sees strong chances of the bill advancing, while Coinbase CEO Brian Armstrong has indicated that a balanced outcome remains possible if stakeholders align on key provisions.

Mixed Signals From Financial Leaders

Goldman Sachs CEO David Solomon has emphasised the importance of establishing a rules-based system for digital assets, echoing calls from policymakers for clearer regulatory structures.

However, not all observers expect regulation alone to trigger a major price rally. Some analysts warn that widely anticipated catalysts may already be reflected in current valuations.

Robin Singh, CEO of crypto tax platform Koinly, said Bitcoin may trade within a broad range in the near term, suggesting it could hover around $70,000 or potentially fall toward $50,000. He noted that strong rallies do not always follow widely predicted catalysts and that demand dynamics remain critical.

Market at a Turning Point

The Clarity Act debate highlights a broader shift in the crypto industry, which has increasingly sought regulatory recognition after years of operating in uncertain legal territory. Supporters argue that comprehensive legislation could provide legitimacy and stability, while skeptics caution that market reactions may not match expectations.

For now, Bitcoin remains in a holding pattern as investors await clearer policy signals from Washington. Whether the outcome leads to renewed momentum or continued consolidation, regulatory developments are expected to play a central role in shaping the crypto market in 2026.