Bitcoin Into 2027: Why We're Bullish
Bitcoin Into 2027: Why We're Bullish
Nearly a year ago, on October 10th, the market broke. Bitcoin has been bearish pretty much across the board since then, falling from an all-time high above $126,000 to a low under $58,000 on July 1. We think that period is ending. Bitcoin hit an eight-month high around $85,000 today. Here's how we're thinking about the rest of 2026 and 2027 at BlockSpaceForce.
The macro backdrop
Corporate Bitcoin treasuries hold a meaningful share of supply. Strategy leads the pack with 846,000 BTC, more than 4% of the 21 million cap, and it's buying again after a summer pause.
The Fed just raised rates by 25 basis points to 3.75%-4%, its first hike since 2023. Normally that's a headwind for risk assets. The move was expected, equities held near record highs through it, and Bitcoin rallied anyway. When risk assets shrug off a hike, appetite is real.
The Greenland saga closed last week with a US-Denmark security deal. The midterms are the next source of political noise. We see that as volatility to trade through, and it doesn't change the thesis.
Regulation: the bill failed, the regulators showed up
The CLARITY Act fell short in the Senate on September 15, with cloture failing 49-50 against the 60 votes needed. Prediction markets had already priced that in. What matters more day to day is that the SEC and CFTC are both firmly constructive on crypto. The industry can build under that posture.
The tourists are gone
Many of the companies that dragged on crypto's performance have been pushed out, wound down, or shut down. The tourists have been flushed. What's left is a smaller, more serious set of builders and holders, which is exactly what you want at the start of a cycle.
Mining is adapting
Hash rate has come off its late-2025 highs as older machines shut down, but the miners themselves have been resilient. Many have diversified into cloud, neoclouds, and AI data centers. That changes how these businesses get capitalized and valued, and it makes the sector sturdier through Bitcoin's down cycles.
Security still needs work
This is the weak spot. The Coldcard exploit that began July 30 traced back to a five-year-old firmware flaw, with losses of more than 1,800 BTC, over $116 million. Then on September 6, a bug in the Elements software let an attacker drain 3,996 BTC, roughly $320 million, from the Liquid Network's reserve wallet. About 3,400 BTC came back, and 598.5 BTC is still missing.
AI tools make this worse before they make it better. There are more surfaces than ever where people can lose funds or get phished. Review your setup now, whether you hold on a licensed exchange, a cold wallet, or a hot wallet. Know exactly what you control and how.
Our thesis
We look at macro, regulation, the projects being built, and ease of adoption together to form a view on where Bitcoin is going.
Crypto benefited from the lull. Builders got practical. The energy has settled on use cases people want: decentralized exchange, privacy like Zcash, and stablecoin rails. That focus has made the whole space resonate more with real users.
The cost of building software has also collapsed. AI tools are good enough that small teams ship what used to take far more capital and headcount. Bitcoin benefits from that.
We're bullish on Bitcoin over the next year and over the long term. The adoption tailwinds are here, and we'd love to see them continue.