2026 Cryptocurrency Wash Trading: Why Institutions Are Picking Up Bottom Chips

Recent market rumors suggest that the United States will officially incorporate cryptocurrencies into the “Too Big to Fail” financial system framework by 2026, and this is not unfounded. Essentially, those Wall Street financial giants—JPMorgan, Goldman Sachs, and others—who once sneered at cryptocurrencies are now sitting in the same boat. This shift reflects a brutal market truth: a large-scale washout is underway, and the last winners are often those who bottom-fish.

Along the way, we see several major investment logic discussions trending online, which just prove why it’s not wise to hand over chips lightly right now:

Why Traditional Finance Must Catch Up: From Watching to Active Participation

In the past, BTC was dismissed as “air,” but by 2026, Bitcoin has truly evolved into a defensive asset. Recently, gold prices have been rising steadily, and Bitcoin is following suit, gradually showing similar characteristics. When market conditions are unstable, big money no longer panics but instead systematically shifts into “hard currencies” like BTC and Solana.

The logic behind this is simple: previously, when prices fell, retail investors panicked and sold; now, when prices drop, institutions see it as a “leverage liquidation” opportunity—an ideal time to accumulate at the bottom. Large funds without chips are opening their arms, ready to scoop up assets on the cheap. Are you really sure you want to give your chips to institutions at this point?

The $300 Billion Stablecoin Ecosystem: An Invisible Revolution in Financial Infrastructure

An often-overlooked data point is that the global stablecoin supply has surpassed $300 billion. This is no longer a small-scale experiment but has become a “highway” for global settlement. Stablecoins are not only transforming cross-border payments but are quietly reconstructing the entire financial ecosystem.

Problems like exchange rate risk and settlement delays are being addressed one by one through stablecoins. As long as this financial backbone remains strong, market confidence persists. This means that future bull markets will no longer rely on a single policy or event but will be built on a more solid financial infrastructure.

Traditional Exchanges Will Also Operate 24/7

The NYSE recently announced plans to build a tokenized securities platform supporting 24/7 trading. This signals loud and clear: traditional finance is being “consumed” and reconstructed by Web3 technology. It’s not that the crypto world is approaching traditional finance; rather, traditional finance is being forced to adapt to crypto technology.

This change is irreversible. Once traditional trading systems support round-the-clock trading, the underlying logic of market operation has fundamentally shifted. Those waiting on the sidelines are no longer debating whether to enter but calculating how much they will lose by missing out.

The Essence of Washouts: An Inevitable Market Cleansing Cycle

Every mature market experiences washouts. This is not a bad thing; rather, it’s a sign of market maturity. Retail investors who buy at low prices are shaken out, while speculators holding high positions are cleaned out. Ultimately, those who truly believe in long-term value and can hold their ground remain.

The current market may seem quiet, like a calm tide retreating. But a retreat often signals that a bigger wave is coming. The bottom wash in 2026 is testing who truly understands this market and who is just riding the wave of speculation.

Survival Rules for 2026: Hold Your Chips and Wait for the Big Wave

This year, it’s not about who rushes the fastest but who survives the longest. Those panicking and selling at the bottom will regret it during the next rally. Those who hold their core chips and continue accumulating will reap the greatest benefits after institutions start large-scale buying.

Don’t get washed out before dawn. Now is the time to test your confidence—recognize the trend, seize high-quality assets, and adopt the right attitude to face the washout cycle of 2026. The future belongs to those who can endure.