Five reasons why 2026 will be the year of the explosion of Crypto Assets

Author: Lance Datskoluo Source: dlnews Translation: Shan Ouba, Golden Finance

Economists explain the bullish core logic for 2026, with key catalysts including the artificial intelligence boom, record corporate earnings, and the Federal Reserve's easing policy.

Ed Yardeni, president of Yardeni Research and economist, pointed out that a strong combination of bullish catalysts is set to ignite the cryptocurrency market in 2026.

He believes that the United States is entering the steepest upward segment of the “Roaring Twenties” curve—where the integration of artificial intelligence, productivity breakthroughs, strong consumption, and high liquidity will drive risk assets like cryptocurrencies to new heights.

Yerdini expects that after experiencing two years of inflation shocks, central bank interest rate hikes, geopolitical conflicts, supply chain disruptions, and tariff frictions, the market will welcome a broad outlook in 2026.

He listed five reasons why 2026 will be the “year of explosion”:

1. Technological Drive for Productivity Leap

Yerdini stated that we are experiencing a significant technological transformation driven by biotechnology, robotics, artificial intelligence, and nanotechnology, which he refers to as the “brain revolution.”

“Technology is doing what the human brain can do, but faster and with more focus,” he wrote, noting that this wave is touching all major industries including healthcare, manufacturing, and education.

These technological tools “supplement or replace the functions of the human brain.”

He added that productivity growth could reach 3% to 3.5% in the coming years.

Productivity enhancement will lead to increased corporate profits, more job opportunities, and a rise in investment activities, thereby boosting investor confidence.

2. Economic Performance Exceeds Expectations

Yerdini stated that “despite facing multiple shocks,” the U.S. economy remains strongly resilient. From the outbreak of the pandemic, supply chain crises, high inflation to prolonged government shutdowns, numerous challenges have not hindered the economy's progress, which has proven its resilience in responding to all these challenges.

He predicts that the GDP of the United States will grow by 3% in 2026, higher than the usual growth rate; at the same time, the productivity indicator measuring production efficiency will see a greater increase.

This trend is usually positive for both the stock market and digital assets.

Yerdini pointed out that the resilience of the economy means that the market will not experience a large-scale collapse, but will continue to undergo a “rolling recession”—that is, only specific industries will slow down while the rest remain robust.

3. Continuous Growth of Corporate Profits

Yerdini stated that large publicly listed companies will also see a significant increase in profits.

He predicts that the average earnings per share of the S&P 500 index constituents (the largest group of listed companies in the United States) will rise from $268 this year to $310 by 2026, and will continue to increase for the remainder of this decade.

Corporate profit growth usually drives stock prices up.

After investors make a profit in the stock market, they often seek new investment channels that can provide higher returns.

Therefore, if Yerdini's prediction comes true, there will be a large influx of new buyers into the risk asset market in 2026, driving significant increases in categories such as cryptocurrencies.

IV. Macroeconomic Policies Provide Support

The current inflation rate has fallen to about 3%. Yerdini stated that as productivity improves, inflation may reach the Federal Reserve's target of 2% next year—improvements in productivity typically mean that companies do not need to raise prices quickly.

He pointed out that if it were not for the tariff policy implemented by U.S. President Donald Trump that raised commodity prices, the current level of inflation would have been lower.

The stabilization of inflation prospects is favorable for cryptocurrencies, as it will provide the Federal Reserve with more room to pause interest rate hikes or even cut rates.

The decline in interest rates will enhance the attractiveness of risk assets such as cryptocurrencies.

5. The Scale of Stablecoins Continues to Expand

Yerdini believes that the popularity of stablecoins backed by U.S. Treasury bills will boost global demand for U.S. government bonds and the dollar, thereby strengthening rather than weakening America's dominant position.

This is consistent with the U.S. Treasury's prediction - by 2030, the stablecoin market size could reach $3 trillion; Citigroup's upper limit prediction is as high as $4 trillion.