High Treasury yields and macro headwinds are suppressing cryptocurrencies, with blue chip tokens like Bitcoin and Ethereum outperforming meme coins like Dogecoin and Shiba Inu. The crypto market cooled off in 2022 and 2023 due to rising interest rates, but catalysts like Fed rate cuts, clearer regulations, and ETF approvals are expected to warm it up in 2026.

Investors are advised to stick with Bitcoin and Ethereum over smaller altcoins and meme coins for potential recovery in 2026. Fed rate cuts and network upgrades in PoS blockchains could stabilize the market, while SEC approvals of more spot ETFs and global adoption of blue chip cryptocurrencies may improve stability. Geopolitical conflicts and regulatory changes could still impact the market.

Read more at Nasdaq: Can the Crypto Sector Bounce Back in 2026?