Bitcoin and altcoins have experienced a rapid recovery in recent days after sharp declines in October and November, periods historically known for bullish trends.
While this recovery slightly increases the expectation of a rise, some analysts believe that a major surge should not be anticipated in the short term.
Expert Views on 2026 Rally Potential
Ophelia Snyder, co-founder of ETF issuer 21Shares, has expressed skepticism about Bitcoin repeating its strong rally from early this year in early 2026.
According to Snyder, the underlying factors currently contributing to market declines and volatility are unlikely to be resolved in the short term.
Snyder noted that January is typically a period for investors to rebalance their portfolios. She stated that a significant positive shift in overall investor sentiment would be necessary for a rally similar to that seen in January 2025 to occur in 2026.
Given the current stagnant market sentiment, Snyder observes that Bitcoin is unlikely to experience a similarly strong rally in January 2026.
Year-End Price Predictions
Another analyst has echoed similar sentiments to Snyder, predicting that Bitcoin will trade within the $85,000 to $95,000 range by the end of the year.
Speaking to Coindesk, Paul Howard of Wincent expects Bitcoin to trade sideways within the $85,000 to $95,000 range by year-end.
Howard argued that low liquidity in December could limit a strong recovery and rally for Bitcoin.
He also indicated that in the absence of clear macroeconomic variables or catalysts, the Bitcoin price is likely to move sluggishly.
Impact on Altcoins and Macroeconomic Factors
However, the analyst suggested that a stagnant Bitcoin environment could create a suitable opportunity for altcoins, potentially shifting some market risk appetite towards them if Bitcoin weakens.
Describing the upcoming interest rate decision by the Bank of Japan (BOJ) as a significant macroeconomic event, Howard stated that if the BOJ maintains steady interest rates, it could potentially revitalize demand for risky assets and foster a positive trend for Bitcoin, gold, and stocks.