• Barclays predicts a muted 2026 for crypto, with declining spot buying and selling volumes and fading investor engagement pressuring exchanges like Coinbase and Robinhood.
  • Occasion-driven spikes, regulatory readability through the CLARITY Act, and tokenisation initiatives may affect exercise, however near-term development is anticipated to stay subdued.
  • Coinbase faces headwinds from weaker spot volumes and rising prices, whereas US regulatory reforms transfer the sector from uncertainty to clearer frameworks, suggesting a transitional yr forward.

Barclays has warned that cryptocurrency markets are more likely to face a subdued setting in 2026, as spot buying and selling volumes decline and investor engagement weakens throughout main platforms. In a year-end analysis report printed on Friday, the financial institution outlined a difficult outlook for digital asset exchanges, highlighting uncertainty round what may drive renewed and sustained exercise.

Retail-focused exchanges that beforehand benefited from elevated buying and selling throughout earlier crypto bull markets are actually encountering extra muted situations, in response to Barclays. The financial institution famous that spot buying and selling volumes, that are central to income era for firms resembling Coinbase and Robinhood, have cooled considerably. And not using a clear catalyst to reverse this development, Barclays expects buying and selling exercise to stay constrained all through the 2026 monetary yr.

Crypto markets have traditionally responded most strongly to discrete occasions somewhat than regular development, the report said. Barclays pointed to earlier bursts of exercise linked to the approval of spot Bitcoin exchange-traded funds in March 2024 and the pro-crypto consequence of the US presidential election later that yr as examples of short-term momentum somewhat than lasting structural change.

Associated: From Taboo to Ticker Tape: Satoshi Nakamoto Appears on Wall Street

Coverage Influence on Crypto

Regulatory developments stay a possible affect on future market dynamics, notably in america. Barclays highlighted the proposed CLARITY Act, which seeks to outline the boundary between digital commodities and securities and make clear regulatory oversight between the Securities and Exchange Commission and the Commodity Futures Buying and selling Fee. 

Whereas the laws may cut back uncertainty for market members if handed, the financial institution cautioned that it isn’t sure to stimulate fast will increase in buying and selling exercise.

Coinbase continues to characteristic prominently in Barclays’ evaluation of the sector. Though the corporate is pursuing enlargement via derivatives, tokenised fairness buying and selling and acquisitions, these initiatives are being undertaken amid declining spot volumes and rising working prices. Reflecting this backdrop, Barclays lowered its worth goal for Coinbase shares to US$291 (AU$448.14), citing a extra conservative earnings outlook.

Tokenisation efforts throughout the trade, together with initiatives involving conventional monetary establishments, had been described as being at an early stage and unlikely to materially affect earnings in 2026. 

This cautious view contrasts with the broader regulatory transformation outlined by Barclays Personal Financial institution, which famous that latest US coverage shifts have moved the crypto sector from regulatory uncertainty in the direction of clearer frameworks following years of enforcement-led oversight. 

Regardless of these longer-term regulatory developments, Barclays’ market outlook means that near-term buying and selling exercise is more likely to stay subdued, positioning 2026 as a transitional interval somewhat than a renewed development part for crypto markets.

Associated: Coinbase Nears $2 Billion Deal for BVNK to Expand Stablecoin Ambitions

The publish Barclays Warns of a Cooler Crypto 2026 as Trading Volumes Fade appeared first on Crypto News Australia.