[DigitalToday reporter Yesul Kim] Bitcoin has fallen more than 40 percent and the crypto market remains in a bear phase. Key factors have been raised that could drive a market rebound in 2026.

Since early 2025, the United States has seen progress on crypto-friendly regulation. The GENIUS bill has opened a path for stablecoin regulation, and the U.S. Securities and Exchange Commission has withdrawn its enforcement agenda. The CLARITY bill, however, is still delayed as banks oppose stablecoin yields.

If the bill passes, it will become clear which agencies oversee digital asset regulation, and banks, asset managers and payments companies are likely to expand participation. With the market currently driven by caution and macro risks, the CLARITY bill could be a strong signal of confidence, the article said.

Institutional demand is also one of the most important forces shaping the crypto market. In 2024 and 2025 there were strong inflows into spot bitcoin exchange-traded funds, which absorbed market supply. The recent decline, however, coincided with ETF outflows, reinforcing selling pressure. If this trend reverses, it could signal that long-term investors are starting again to view crypto prices as an attractive entry point.

Institutional money moves slowly, but once it returns it can reshape market momentum. Standard Chartered's Geoff Kendrick said, "When bitcoin is at $50,000 or $60,000, it will look very attractive as a medium-term investment."

Another catalyst could come from a new technological narrative around automated digital finance. Agentic finance is the idea that AI-based agents automatically execute financial transactions, manage assets and interact with blockchain networks. The idea is still at an early stage, but major payments and technology companies are discussing blockchain-based automated finance systems.

A key difference between this downturn and previous crypto winters is the absence of a large-scale industry collapse. In 2022, in particular, the collapse of major companies defined the bear market. The current market appears more stable. Infrastructure has improved, institutions are more deeply involved and volatility has eased compared with the previous cycle. Lower volatility tends to make investors view the market as less chaotic and more investable, the outlet said.