JPMorgan Anticipates Major Growth in Cryptocurrency Investments by Institutions

Arthur Hayes anticipates a bitcoin rally amid rising dollar liquidity.

In a recently published analysis, experts from JPMorgan have predicted a continued surge in capital inflows into cryptocurrencies, particularly driven by institutional investors. This forecast anticipates a growth trajectory where inflows will significantly surpass prior years, with estimates suggesting around $130 billion in 2025 alone—up by a third from 2024, according to reports by The Block.

The anticipated adoption of the Clarity Act in the United States is expected to provide a much-needed regulatory framework that will catalyze activities in venture financing, mergers and acquisitions, and initial public offerings (IPOs). This streamlined regulation is projected to invigorate the sectors dealing with stablecoins, payment solutions, infrastructure, and custodial services.

2025 Highlights

The last year predominantly showcased a dynamic fueled by retail investors, particularly through inflows into Bitcoin and Ethereum exchange-traded funds (ETFs). Additionally, an increasing number of firms utilized digital assets as reserves, marking a pivotal shift in institutional cryptocurrency involvement. However, it’s worth noting that hedge fund activity on futures traded on the CME saw a marked decline relative to 2024.

During this boom, digital asset firms—termed Digital Asset Trusts (DAT)—accounted for more than half of the influx, remarkably pulling in around $68 billion. Notably, $23 billion of this total stemmed from a firm called Strategy, which showed a slight increase compared to the $22 billion captured the previous year. Meanwhile, various other market participants poured $45 billion into digital assets, which was a significant rise from the $8 billion logged in the past period.

However, momentum began to wane after October, with key holders such as Strategy and BitMine scaling back their purchasing activities by year-end.

Venture Market and Forecasts

The venture financing landscape experienced minor growth, yet it couldn’t reclaim the high levels seen during the 2021-2022 period. Many investors redirected their capital — originally earmarked for startups — into more liquid DAT strategies, resulting in a decline in the number of deals overall.

Analysts emphasized that the phase of risk reduction had concluded. By late 2025, the shedding of positions by investors was a thing of the past, and the market began stabilizing, marked by consistent ETF flows and other key indicators.

Hayes’ Forecast

Arthur Hayes, the former CEO of BitMEX, recently articulated his insights on Bitcoin’s underwhelming performance throughout 2025, especially in contrast to the robust gains seen in gold and technology sector equities. He posits that the situation is poised to improve in 2026 thanks to a “forced infusion” of dollar liquidity entering the U.S. economy.

“Frowny Cloud” is a chart study of $BTC, gold, and stonks in 2025, and a prediction on how dollar liquidity will expand this year and send $BTC to Valhalla.https://t.co/UvagTQl219 pic.twitter.com/nj5ja6DEmi

— Arthur Hayes (@CryptoHayes) January 15, 2026

Hayes elaborated that Bitcoin, which relies on monetary expansion, naturally responded negatively to the recent contraction of the Fed’s balance sheet. In contrast, gold experienced notable appreciation driven by the increased activities of central banks, which have been accumulating physical gold rather than holding U.S. Treasury bonds. This trend is partly attributed to sovereign nations’ apprehensions regarding potential asset freezes, reminiscent of the actions taken against Russia’s reserves in 2022.

“Central banks act as insensitive buyers to quotes. If the U.S. president can steal your money, its value instantly becomes zero. In such conditions, the purchase price of gold does not matter if it eliminates counterparty risk,” he wrote.

Further, Hayes interpreted the surge of the Nasdaq index—particularly within the artificial intelligence sector—as a form of “nationalization” led by the U.S. government. Following Donald Trump’s election platform, authorities are channeling investments into AI to preserve the nation’s technological supremacy over China. This scenario has essentially allowed tech stocks to receive financing seemingly irrespective of profit margins or overarching credit market climates, causing a detachment from shrinking dollar liquidity.

2026 Forecast: Liquidity Returns

According to Hayes, the liquidity landscape is set to shift dramatically in 2026 for three pivotal reasons:

1. Fed balance growth. The quantitative tightening agenda is now complete. New reserve management strategies will facilitate money influxes geared towards servicing national debt.
2. Bank lending. Financial institutions are expected to ramp up lending towards “strategic industries” and the military-industrial complex backed by government assurances, thereby generating new money within the economy.
3. Real estate market. The U.S. government plans to leverage mortgage agency balances to purchase securities, thereby lowering interest rates to stimulate economic growth.

Investment Strategy

Hayes advocates that with an impending uptick in liquidity, Bitcoin is likely to resume its ascendant trajectory. He suggests a bullish outlook, particularly on shares of the DAT companies Strategy and Metaplanet. His analysis reveals that the current valuation of these shares relative to the Bitcoin they hold is at a two-year low. Should Bitcoin’s value ascend to $110,000, Hayes anticipates that these stocks may exhibit superior returns thanks to inherent leverage.

Moreover, the Maelstrom fund is actively expanding its position in Zcash, interpreting recent developer departures from the ECC as promising for the evolution of commercial applications surrounding the currency.

Data from Glassnode highlights a resurgence of institutional investor interest in Bitcoin purchases amidst volatility risks, signaling a broader market rebound.

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