Bitcoin and Ethereum are poised to attract institutional capital in 2026, potentially expanding their dominance at the expense of other cryptocurrencies. Following a volatile fourth quarter in 2025, institutional investors have begun rotating away from altcoins toward the two largest assets. Industry chatter, including discussions in the Shark Tank community, indicates traders are trimming exposure to smaller tokens in favor of BTC and ETH.
Bitcoin and Ethereum offer the deepest liquidity in the crypto market, a factor that could become more influential during periods of stress. Net OTC buying pressure for BTC and ETH shifted to a positive regime heading into 2026, signaling steady demand. Altcoins remain pressured by heavy supply overhangs and ongoing token unlocks, suppressing their ability to attract fresh capital. An October 10 leveraged-flush episode underscored how liquidity fragility can distort prices in the long tail.
Regulatory clarity is central to this dynamic. The CLARITY Act would classify many digital assets under SEC or CFTC oversight, providing clearer status for major assets. In that environment, BTC and ETH are seen as the assets with clearer regulatory classification, guiding investor preference away from altcoins. Corporate demand has also been a factor.
While the digital asset treasury narrative faded, weekly acquisitions by firms like Strategy and BitMine helped BTC and ETH stay comparatively stable. Current price context shows BTC around $87,500 and ETH near $2,970, reflecting a cautious but ongoing institutional interest.
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