“If current conditions hold steady, ETF inflows, accommodative monetary policy, and regulatory clarity, 2026 may start with more gradual, multi-month market movements rather than volatile surges,” said Nischal Shetty, WazirX CEO and Shardeum Co-Founder.
In an exclusive interview with 99Bitcoins.com, Shetty talked about his 2026 crypto forecast, while insisting that “Bitcoin will continue reacting to institutional portfolio decisions and global liquidity cycles. Ethereum’s trajectory depends more heavily on real-world adoption: tokenized assets, DeFi activity, and developer momentum.”
“Volatility will remain part of crypto, but broader participation and maturing infrastructure can reduce extreme swings,” he added.
On The Current Bear Market
Calling it a “severe bear market” may be premature. What we’re seeing is a consolidation phase that often follows significant new all-time highs and large capital inflows.
Markets don’t move in straight lines, especially when institutional participation increases. Spot Bitcoin ETFs are a major catalyst in this cycle, because they give traditional institutions a regulated and familiar mechanism to hold Bitcoin. But ETFs alone don’t define market structure. Meaningful maturation requires several elements: regulation, custody infrastructure, liquidity depth, and seamless fiat ramps.
From building Shardeum from its seed stage to mainnet, I’ve seen how ecosystems evolve real adoption takes time, and pullbacks are part of that learning curve. So instead of viewing this as a bearish breakdown, I see it as a normalization phase in a market transitioning from retail-driven hype to long-term institutional participation
Industry giants are pushing back against bear market talk. What is your take on this?
Their perspective reflects the structural changes already underway. Lower volatility around major price levels, even during corrections, suggests that institutional flows are balancing speculative trading behaviour.
ETFs have introduced steady allocation patterns that soften emotional market swings. However, this doesn’t mean volatility is gone. If macro liquidity tightens or ETF flows flip negative, corrections can still accelerate quickly.
So rather than dismissing concerns, I view this as a transition toward a more mature and resilient market structure, not a completed transformation. This phase mirrors what we experienced building Shardeum: progress comes with waves of skepticism, optimism, and recalibration and each wave strengthens the foundation.
What’s In Store For 2026?
How do Bitcoin’s new all-time highs, a potential $4 trillion market cap, and rising institutional ETF participation shape your outlook for the broader crypto market heading into 2026?
Institutional ETF participation is the defining characteristic of this cycle. Instead of short-term retail- driven peaks, we’re seeing structured inflows that behave similarly to traditional asset allocations. That creates deeper liquidity, stronger market depth, and more predictable behaviour.
As ETFs expand beyond Bitcoin and Ethereum eventually into other assets with clear utility we’ll see more capital formation, more regulated pathways, and a shift from speculation to long-term infrastructure building.
By 2026, the broader market will look less like a high-volatility frontier and more like an emerging asset class with growing integration into global financial systems.
How are evolving regulatory policies across the US, EU, India, and the Asia-Pacific region influencing the next phase of crypto industry growth and investor confidence?
Regulation is now shaping adoption, not slowing it.
- The US is moving from enforcement-led ambiguity toward clearer classifications through ETF approvals and legal precedents.
- The EU’s MiCA framework offers one of the most comprehensive models globally, giving
institutions a predictable compliance path.
- Asia-Pacific markets like Singapore and Japan are positioning themselves as regulated
innovation hubs.
- India’s shift is particularly meaningful. Strengthened compliance frameworks, tax clarity, and public-sector interest in digital infrastructure suggest a path where innovation and regulation can coexist.
What role will advancements in Layer-1 and Layer-2 technologies, AI-enabled crypto applications, blockchain gaming, and real-world asset tokenization play in driving mainstream adoption?
The next wave of adoption will be driven by infrastructure, especially scalable Layer-1 networks capable of supporting millions of daily transactions at low cost.
India’s developer ecosystem is growing rapidly, and affordable, reliable L1 platforms enable experimentation across DeFi, gaming, identity, payments, and consumer apps.
Layer-2s will add additional scale where required, especially for high-throughput applications, but the long-term foundation will come from L1s capable of delivering predictable performance at global scale, which has been core to Shardeum’s design.
How do you see the convergence of AI and crypto, the rise of memecoins, and increasing adoption in emerging markets shaping the ecosystem over the next few years?
AI and crypto together will power a smarter, automated Web3 where on-chain systems can analyse data, execute transactions, and create personalized user experiences. Memecoins, despite being highly speculative, will continue acting as cultural gateways, onboarding millions through community and narrative before they explore deeper use cases.
For emerging markets like India, the real transformation will come from utility: remittances, tokenized assets, digital identity, stablecoin-based finance, and AI-driven compliance systems that make Web3 safer and more accessible. Together, these forces point toward a future where participation grows, infrastructure strengthens, and crypto shifts from experimental technology to essential digital infrastructure.
About WazirX
WazirX is an Indian cryptocurrency exchange platform that allows users to buy, sell, and trade a variety of digital assets. Launched in 2018, it is known for being one of India’s largest exchanges and is part of the Binance ecosystem. Nischal Shetty is the co-founder and CEO of WazirX.
About Shardeum
Shardeum is an EVM-compatible Layer 1 blockchain that uses dynamic state sharding to achieve high scalability and low fees while maintaining decentralization. Nischal Shetty is the co-founder of Shardeum.
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