Bitcoin is expected to face challenges in 2026, potentially dropping to a low of $60,000 by Q4 according to analyst Michael Terpin. The cryptocurrency market is breaking the four-year cycle theory, with Bitcoin set to close 2025 lower than it started. The chance of new highs is decreasing.

A new Federal Reserve chair may lower interest rates, but the outcome of the 2026 US midterm elections could impact the pro-crypto regulatory environment. Despite predictions of Bitcoin reaching $180,000 to $250,000 in 2025, the year is ending with prices lower than anticipated, signaling a turbulent period.

Payment infrastructure for Bitcoin is expected to grow in 2026, making it easier to use as a medium of exchange. Companies like Square are integrating Bitcoin payments into their systems, allowing merchants to accept BTC and convert part of their sales automatically. Bitcoin neobanks and stablecoins will contribute to its usability.

The Bitcoin Lightning Network, a layer-2 scaling solution, enhances the use of BTC for payments by reducing friction and opening up payment channels. It is projected to capture 5% of stablecoin flows by 2028. The network simplifies transactions by consolidating balances into one final ledger entry.

Read more at CoinTelegraph: Bitcoin Will Extend Decline in 2026, While Payment Infra Improves: Analysts