Bitcoin, the most well-known of the cryptocurrencies, is having a topsy-turvy 2025. The largest cryptocurrency in terms of market cap ($1.79 trillion) began the year at $93,615.04 but dropped to a yearly low of $76,270.13 in April. It gradually recovered to hit an all-time high of more than $126,000 in early October, driven by strong institutional interest, growing recognition as a store of value, and liberal policies of U.S. President Donald Trump. However, since then, bitcoin has retraced roughly 30% due to aggressive selling and profit-taking by large holders. Bitcoin is currently hovering around $90,000 and is expected to remain under pressure due to sluggish demand.

Although the near-term is expected to remain chaotic, bitcoin’s prospects in 2026 are anticipated to benefit from growing interest from institutions like Exchange Traded Funds (ETFs), corporate treasuries, family offices and sovereign funds. The expected passage of the CLARITY Act in January 2026 can act as a tailwind, as it will create a regulatory framework for digital asset regulation. An improving regulatory environment is expected to boost institutional investor confidence, paving the way for further investments. This bodes well for bitcoin-centric stocks, including Robinhood Markets (HOOD Quick QuoteHOOD - Free Report) , Klarna Group Plc (KLAR Quick QuoteKLAR - Free Report) , Sofi Technologies (SOFI Quick QuoteSOFI - Free Report) and CME Group (CME Quick QuoteCME - Free Report) .

Bitcoin Rally to Continue Amid Crypto Winter Threat?

Bitcoin is facing the threat of a crypto winter in 2026. Historically, the cryptocurrency has followed a four-year cycle, with the last major winter happening between November 2021 and November 2022. Traditionally, bitcoin rises post “halving,” a quadrennial event, under which the number of bitcoins created every 10 minutes is cut in half, intentionally limiting the supply of bitcoin, thereby driving demand for bitcoin. Post halving, the bull run generally continues till bitcoin hits a new peak, which happened in October 2025. The roughly 30% dip since then has ignited debate over whether bitcoin is already in a bear market or not. The bearish analysts expect bitcoin prices to fall toward $70,000 in the near term and further to $56,000 over the long term.

However, crypto-focused asset manager Grayscale expects this four-year cycle to end in 2026. Grayscale expects bitcoin prices to hit a new all-time high in the first half of 2026. Improving the regulatory environment and growing recognition of cryptocurrencies as alternative stores of value are major catalysts. BitMex co-founder Arthur Hayes believes that bitcoin will quickly recover to $1,24,000 and will hit $2,00,000, driven by the U.S. Federal Reserve’s newly introduced “Reserve Management Purchases” policy, which is essentially a quantitative easing process addressed to boost liquidity through accelerated money creation. According to Galaxy Research, chances of bitcoin making a new all-time high in 2026 are possible and will hit $250,000 by the end of 2027. 

Institutional demand is expected to recover with an improving regulatory environment. According to Quartz, BlackRock has ranked iShares Bitcoin Trust ETF (IBIT) among its top three 2025 investment themes. IBIT has attracted around $25 billion in net inflows this year. Net inflows in crypto ETFs are expected to exceed $50 billion in 2026, driven by the launch of more than 100 crypto-linked products thanks to the approval of generic listing standards by the U.S. SEC in September 2025.

4 Crypto-Oriented Stocks to Rally

Robinhood offers trading services in crypto, stocks, options and ETFs, cash management, margin, securities lending and Robinhood Gold. HOOD is benefiting from higher transaction revenues driven by growing retail market participation. Robinhood’s digital-native strategy has enabled the company to scale rapidly across the United States. Strategic acquisitions and product expansion efforts aimed at active traders are expected to benefit this Zacks Rank #1 (Strong Buy) company’s prospects in 2026. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for 2026 earnings is pegged at $2.40 per share, up 14.8% over the past 60 days, suggesting 20.6% growth from 2025’s consensus earnings estimate of $1.99 per share. 

Klarna offers payment solutions that connect consumers and merchants. In the third quarter of 2025, active Klarna consumers jumped 32% year over year to $114 million. KLAR had 850K merchants at the end of the third quarter, up 38% year over year, while Gross Merchandise Volume exceeded $100 billion. Klarna expanded its cryptocurrency footprint with Privy and Coinbase partnerships. The launch of KlarnaUSD is a key catalyst for this Zacks Rank #2 (Buy) stock.

The Zacks Consensus Estimate for 2026 earnings is pegged at 50 cents per share, up four cents over the past 30 days. The consensus mark for 2025 loss is pegged at 57 cents per share, narrower by 6 cents over the past 30 days. 

SoFi Technologies offers financial services that enable members to borrow, save, spend, invest and safeguard their money. SoFi became the first nationally chartered bank in the United States to launch crypto services for retail customers through its new SoFi Crypto platform. On Dec. 18, SoFi launched SoFiUSD, a fully reserved U.S. dollar stablecoin that can be used by banks, fintechs and enterprise platforms. SoFi Technologies carries a Zacks Rank #2. 

The Zacks Consensus Estimate for 2026 earnings is pegged at 59 cents per share, up a couple of cents over the past 60 days, suggesting 62.1% growth from 2025’s consensus earnings estimate of 36 cents per share. 

CME Group is riding on record volume growth. Strong customer base, reflected by quarter and year-end open interest of 126 million contracts, the highest open interest at the end of September in the past five years, reflects growing interest. CME Group’s crypto complex traded a record 340,000 contracts per day in the third quarter of 2025 and jumped more than 225% year over year, driven by successful offerings of Solana and XRP futures. This Zacks Rank #3 (Hold) company plans to offer 24/7 trading of cryptocurrency futures and options beginning early 2026.

The Zacks Consensus Estimate for 2026 earnings is pegged at $11.61 per share, up by a nickel over the past 60 days, suggesting 4.3% growth from 2025’s consensus earnings estimate of $11.13 per share.