3 Reasons Bitcoin's Momentum Could Continue Into 2026 and Beyond

For the year, Bitcoin (CRYPTO: BTC) might only be up 13%. But let's put this into context: Almost all of the world's top cryptocurrencies are down double-digits this year, and Bitcoin has clearly broken away from the pack.

If you're thinking about investing in Bitcoin, the good news is that this momentum is likely to continue into 2026. Here are three reasons why.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Support for Bitcoin from the Trump administration

The most obvious reason, of course, is high-profile support from the Trump administration. President Donald Trump came into office this year promising a pro-crypto agenda, and he has delivered just that. The big move came in March, when he announced the creation of the Strategic Bitcoin Reserve.

Image source: Getty Images.

Currently, the big focus is on blockbuster new crypto legislation that will further legitimize the role of crypto within the U.S. economy. New stablecoin legislation is likely to be signed by the end of this summer. Next up will be broad crypto market reform legislation. This, too, could be ready by the time of the congressional recess in August.

Bitcoin is already going mainstream, and bipartisan support in Washington, D.C. is only going to make it easier for banks, corporations, and institutional investors to buy and hold crypto. In theory, this means that Bitcoin could continue to increase in value from now until 2028.

The emergence of Bitcoin treasury companies

The next major factor is the emergence of Bitcoin treasury companies. Ever since Strategy announced it was transforming into a Bitcoin treasury company in February, a slew of copycats have followed. Everyone, it seems, is buying Bitcoin this year.

And when I say "everyone," I mean everyone. Medical device companies are buying Bitcoin. Media companies are buying Bitcoin. Luxury watchmaker companies are buying Bitcoin.

At the same time, investors are using every form of financial alchemy possible -- from reverse mergers to special purpose acquisition companies (SPACs) -- to create new companies that do nothing but buy Bitcoin.

On the surface, this might just seem like the trendy thing to do: buy Bitcoin because everyone else is buying Bitcoin. But, as they say, always follow the money. And the money trail leads directly to FASB ASU 2023-8.

This is a rather arcane accounting rule from the Financial Accounting Standards Board (FASB) dating back to December 2023 that enables companies to mark to market the crypto assets they hold on their balance sheets. The rule went into effect in December 2024, so we're seeing the impact in 2025. Previously, companies were only able to mark to market their crypto holdings if they were selling these assets.

Unless you're an accountant, this might not seem like a big deal, until you realize the potential impact that it has on shareholder value. If Bitcoin is soaring in value, this means your company -- if it chooses to buy and hold Bitcoin -- will also be soaring in value. At the beginning of the year, for example, Tesla was able to post $600 million in gains, simply due to the Bitcoin it was carrying on its balance sheet.

Sovereign governments are coming next for Bitcoin

Thus far, sovereign governments have been relatively quiet when it comes to Bitcoin. But this is likely to change very soon. Last year, many people expected sovereign wealth funds to lead the way. But in 2025 and beyond, it looks like strategic Bitcoin reserves will lead the way forward.

In order to keep up with the United States, a number of governments around the world have already announced intentions to launch strategic Bitcoin reserves of their own. The most high-profile of these is Brazil. And, within the United States, three U.S. states have already approved the creation of strategic Bitcoin reserves of their own, with many more on the way.

The big question, of course, is how much Bitcoin these strategic reserves are going to acquire. According to Michael Saylor, founder and executive chairman of Strategy, the U.S. government should plan to acquire 20% of the world's total Bitcoin supply. That's a lot of Bitcoin. Obviously, this type of buying pressure is only going to push Bitcoin higher.

What to look for next

Based on the above, it's pretty easy to put together an informal calendar for what happens next in 2025 and 2026. This summer, look for new crypto legislation to be signed into law. In the fall, look for a major corporation -- most likely, a Silicon Valley tech behemoth -- to announce plans to add Bitcoin to its balance sheet. And, this winter, look for signs of an impending "Bitcoin arms race," as nations around the world compete to buy as much Bitcoin as possible.

As a Bitcoin investor, it will be fun to sit back and watch. Yes, Bitcoin might seem to be priced into the stratosphere right now. But just wait a few years, and a small investment in Bitcoin now might turn out to be the best investment you ever make.

Should you invest $1,000 in Bitcoin right now?

Before you buy stock in Bitcoin, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bitcoin wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $881,731!*

Now, it’s worth noting Stock Advisor’s total average return is 994% — a market-crushing outperformance compared to 172% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 9, 2025

Dominic Basulto has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin and Tesla. The Motley Fool has a disclosure policy.