Bitcoin could rise above $150,000 by the end of 2026 if U.S. regulation becomes clearer, a forecast said.

The Crypto Basic, a blockchain outlet, reported on May 14 that Rick Edelman (릭 에델먼), known as a legendary investor and financial adviser, argued that the CLARITY Act could be a major turning point for the cryptocurrency market.

In a recent interview on the Milk Road podcast, Edelman said that if regulatory uncertainty in the United States is resolved, conditions would open up for Wall Street to participate fully in the cryptocurrency market. He said passage of the CLARITY Act could be the starting signal for Wall Street to expand cryptocurrency investment.

He also said it would not be surprising at all if bitcoin exceeds $150,000 by the end of this year. He maintained his existing forecast that bitcoin will reach $500,000 within this decade.

He focused on the inflow of institutional money. Edelman said that if regulation becomes clearer, traditional financial firms could more quickly incorporate cryptocurrencies into asset allocation strategies. He singled out Morgan Stanley, which he said manages about $7 trillion in assets, and noted that the firm is already encouraging advisers to allocate part of client portfolios to cryptocurrencies.

Edelman argued that even if major Wall Street financial firms allocate only 2 to 3 percent of total assets under management to cryptocurrencies, large sums could flow into the market. He said, "Even just 3 percent of $7 trillion would push bitcoin prices sharply higher." He said institutional inflows could drive prices up, and higher prices could in turn draw in investors and corporate participation, creating a virtuous cycle.

The forecast is also linked to long-term asset allocation strategies. Edelman said the traditional 60/40 portfolio may no longer be sufficient in an environment of longer life expectancy. The financial planning industry has recommended a baseline of 60 percent in stocks and 40 percent in bonds, lowering the stock allocation as retirement approaches.

Edelman said that in an era of living to 100, that approach alone could make it difficult to cover later-life funding needs. He cited research with the Stanford Center on Longevity and the MIT AgeLab, saying the existing financial system still rests on the assumption that people die around ages 85 or 90. He argued that as life expectancy rises, investors need to maintain a higher share of growth assets for longer.

He therefore proposed an 80/20 asset allocation model instead of the 60/40 model. In this model, cryptocurrencies were presented not as an auxiliary asset but as one pillar of growth assets. Edelman said, "If you are going to put 80 percent of your money in stocks, then at least 10 of that 80 should be in cryptocurrencies." He also said younger, growth-oriented investors could take digital assets up to 40 percent.

He did not argue for concentrating on a single asset. He said a strategy is possible that puts the largest weighting on bitcoin based on market capitalization share, while also adding ethereum and solana. He said that if regulatory clarity and institutional inflows align, cryptocurrencies could move beyond short-term speculative assets and establish themselves as growth assets in long-term portfolios.

He also included cryptocurrency infrastructure companies as investment targets. He said exposure to the market can also be gained through Coinbase, Robinhood and stablecoin issuers. That means entry routes available to institutional investors are increasing beyond directly buying tokens.

He also stressed that he does not view artificial intelligence and cryptocurrencies as substitutes. Edelman said the two industries could move in ways that support each other's growth. He cited examples of bitcoin mining companies expanding into AI infrastructure and data center businesses, and said the two technologies have already begun to combine at a practical level.

Edelman forecast that if U.S. regulatory clarity, broader adoption by institutional investors and AI growth trends align, the digital asset market could enter a long-term expansion phase. He said cryptocurrencies could take on a more important share in long-term portfolios and stressed that investors should not be completely detached from market changes.