ARK Invest Sees Bitcoin Cycle Influenced by Regulation, Real-World Assets Growth
According to ARK Invest's Director of Digital Asset Research, Lorenzo Valente, Bitcoin's four-year cycle may be influenced by investor behavioral patterns, monetary policy, and regulatory landscapes.
The market capitalization of tokenized assets on public blockchains, known as Real-World Assets (RWA), has grown significantly in 2026, reaching $38 billion in the third quarter. This growth is expected to continue with RWA.io valuing the larger RWA market at around $345 billion.
Valente believes that institutionalization and tokenization of real-world assets will be key drivers for future growth in the cryptocurrency industry. He emphasizes the importance of regulation, citing the implementation of the Markets in Crypto Assets Regulation (MiCA) in Europe as a positive development.
In terms of potential winners in the next growth phase, Valente highlighted Hyperliquid and mentioned that Zcash faces challenges due to its limited programmability compared to other networks like Ethereum and Solana.