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No. 0045 — Winter 2026 · Quarterly Analysis

Bitcoin Network
Report.

Q1 2026. We assess actual performance against our Fall 2025 forecast, survey the current network state, and recalibrate near-term projections.

Report DateJanuary 26, 2026 Analysis PeriodQ1 2026 Prepared ByCarroll Park Capital LLC
No. 0046 — Executive Summary

The state
of play.

Network fundamentals remain robust after the December capitulation; near-term price projections come down.

No. 0047 — Performance

Vs. Fall 2025
predictions.

Three months into the forecast period, we mark prior calls to market and recalibrate where needed.

In our Fall 2025 Bitcoin Network Report, Carroll Park Capital published probability-weighted price projections and network metrics through 2035. We now assess actual performance against those predictions and recalibrate where necessary.

Fall 2025 Price Predictions vs. Current Reality (January 2026)
MetricFall 2025 PredictionActual (Jan 2026)VarianceAssessment
BTC Price (2025 EOY)Bear $77K · Base $140K · Bull $187K$88,305Below base case⚠ Tracking below base
Network Hashrate1,040 EH/s (Oct baseline)1,024 EH/s-1.5%✓ Within expectations
USD Hashprice$51/PH/day (Oct)$39/PH/day-23.5%⚠ Steeper decline than forecast
Institutional Holders338 (Oct baseline)338Flat✓ Consolidation phase
Spot ETF AUM$58B (Oct baseline)$58BFlat✓ Stable base
2026 Full Year (Updated)Bear $62K · Base $200K · Bull $270KSee revised below📊 Recalibrated

Key observation: at $88K, BTC tracks between our Bear ($77K) and Base ($140K) year-end 2025 scenarios — below the 60%-weighted base case. We read this as consolidation, not deterioration. The December capitulation matched our Fall forecast, though hashprice compression was steeper.

Where we were right

  • Miner capitulation: predicted efficiency-driven consolidation; December confirmed weak hands exiting.
  • Supply dynamics: on track for the 20M BTC milestone (March 15, 2026).
  • Institutional stability: 338 holders steady; no major redemptions.
  • Network fundamentals: hashrate recovered quickly after December.
  • Long-term holders: 74% of supply held by LTHs, in line with forecast.

Where we're recalibrating

  • Near-term price: 2026 base case revised down from $200K to $135K–$165K.
  • Hashprice: steeper compression than anticipated; updating the miner-economics model.
  • Institutional timing: slower Q4'25 adoption; pushing acceleration into Q2–Q3'26.
  • Macro headwinds: incorporating broader risk-off not fully weighted in the Fall analysis.
  • ETF flows: expecting resumed inflows in Q1 2026 as macro stabilizes.
Revised 2026 Price Projections (Fall 2025 vs. Winter 2026)
Bear (Revised)
20% Probability
$55K–$75K

Down from Fall: $62K. Broader crypto crackdown, sustained macro weakness, extended miner capitulation.

Base (Revised)
60% Probability
$135K–$165K

Down from Fall: $200K. Delayed institutional flows into Q2–Q3; conservative post-capitulation recovery.

Bull (Revised)
20% Probability
$200K–$250K

Down from Fall: $270K. Accelerated sovereign adoption, ETF inflow surge, miner supply crunch amplifies the shock.

Methodology note: we update near-term projections each quarter based on observed market behavior. Long-term 2030–2035 projections are unchanged. This report supersedes Fall 2025 near-term projections for 2026–2027.

No. 0048 — Network State

Current
network state.

Post-capitulation snapshot of hashrate, difficulty, supply, and holder distribution.

Network Hashrate
1,024 EH/s
7-day SMA · down from 1,100+ peak
Mining Difficulty
148.26T
Adjusted January 2026
USD Hashprice
$39/PH
Per day · near breakeven
Bitcoin Price
$88,305
January 26, 2026
Bitcoin Supply Progression
Total Supply Mined
19.91M
94.8% of 21M cap
Remaining to Mine
~1.09M
Over next 114 years
Daily Issuance
450 BTC
Until April 2028 halving
Lost BTC (Est.)
3–4M
Permanently inaccessible

Key milestone: the 20 millionth Bitcoin is projected to be mined on March 15, 2026 — 95.2% of total supply — leaving only ~1M BTC to be distributed over the next 114 years.

Network Activity & Holder Distribution
MetricCurrent ValueContext
Daily Active Addresses700K – 1MQuality metric; not speculative peak
Non-Zero Balance Addresses54 millionGrowing steadily
Long-Term Holders (LTH)74% of supplyHeld 155+ days; strong conviction
Whale Wallets (1K+ BTC)~2,100 addressesConcentrated ownership
Institutional Holders338 entitiesDoubled year-over-year
Spot ETF AUM$58 billionJanuary 2026
Global Bitcoin Owners (Est.)100M+~1.25% of global population
No. 0049 — Mining Economics

Mining &
network security.

December's capitulation cleared marginal capacity and improved economics for the survivors.

A meaningful miner capitulation occurred in December 2025, per JPMorgan. Network hashrate fell roughly 30 EH/s (-3% month-over-month) as marginal operations shut down or reduced capacity. We read this as market-clearing of weak operators, which historically precedes more stable network economics rather than the reverse.

Hashrate Evolution & Miner Capitulation
Current USD Hashprice
$39/PH
Per day · January 2026
Daily Block Reward Rev.
$38,700
Per EH/s · record low
YoY Revenue Decline
-32%
Miner margin compression
Full Mining Cost
~$137K
Per BTC w/ depreciation

Margin squeeze: at $39/PH/day, only miners with sub-$0.04/kWh power and sub-10 J/TH machines hold acceptable margins. December removed ~3% of less-efficient capacity, improving economics for survivors.

Hardware efficiency requirements

  • Sub-10 J/TH machines required post-2028
  • Next-gen 5nm/3nm chips necessary
  • Continuous hardware refresh cycle
  • Substantial CapEx requirements
  • Only well-capitalized operations survive

Energy economics

  • Sub-$0.04/kWh electricity critical
  • Stranded/curtailed energy optimal
  • Renewable integration advantages
  • Geographic arbitrage essential
  • Long-term power purchase agreements
No. 0050 — Forward Projections

Forward
projections.

Probability-weighted modeling across Bear (20%), Base (60%), and Bull (20%) pathways.

These scenarios reflect materially different assumptions regarding regulatory frameworks, institutional adoption velocity, macroeconomic conditions, and technological development.

Network Hashrate Projections (2026–2036)
Daily Active Address Projections (2026–2036)
DateMilestoneSupply MinedSignificance
March 15, 202620M BTC Mined95.2%Psychological threshold; <1M remaining
April 2028Halving #597.7%Issuance 450 → 225 BTC/day
2030Ultra-Scarcity98.1%70%+ supply illiquid (base case)
2032Halving #698.9%Issuance 225 → 112.5 BTC/day
2036Mature Reserve Asset99.0%75%+ supply illiquid (base case)
No. 0051 — Institutional Adoption

Institutional
adoption.

338 disclosed institutional holders as of January 2026 — roughly double year-over-year.

This cohort includes publicly traded companies, private firms, investment funds, and early sovereign entities. The $58 billion in spot ETF AUM provides a convenient, regulated vehicle for traditional allocators.

Institutional Holder Growth Projections
Long-Term Holder & Illiquid Supply Evolution

2026–2028 · Foundation Phase

  • 2026: 5–10 sovereign wealth funds accumulating
  • 2027: 10+ SWFs with disclosed positions
  • 2027: 25–30 S&P 500 companies hold BTC
  • 2028: 50+ S&P 500 companies post-halving
  • 2028: first G20 nation announces a strategic reserve

2029–2036 · Acceleration Phase

  • 2030: 20+ nation-states with BTC reserves
  • 2030: BTC ETFs surpass gold ETF AUM
  • 2032: 30+ nations; IMF acknowledges BTC
  • 2035: 50+ nations; digital-gold status
  • 2036: global monetary-system integration
No. 0052 — Scenario Analysis

Scenario
analysis.

Network-health scores across the three probability-weighted pathways.

Bear
20% weight
Health 6.5/10
Base
60% weight
Health 8.5/10
Bull
20% weight
Health 9.5/10

Bear case dependencies (20%)

  • Regulatory crackdown in major jurisdictions
  • Multiple high-profile custodial failures
  • Prolonged global macro recession
  • Quantum computing breakthrough threat
  • Energy crisis impacting mining economics
  • Aggressive CBDC competition
  • Institutional redemptions from ETFs

Bull case dependencies (20%)

  • Nation-state FOMO (50+ countries by 2032)
  • IMF / World Bank Bitcoin integration
  • Mining hardware efficiency breakthroughs
  • Transaction fee market maturity
  • Zero major custodial failures
  • Accelerated regulatory clarity globally
  • Corporate treasury mass adoption
No. 0053 — Conclusion

Supply
tightening.

Fundamentals enter 2026 in better shape than the headline hashrate volatility suggests.

The December 2025 miner capitulation removed marginal capacity and improved unit economics for the operators that remained. With 94.8% of total supply mined and the 20 millionth BTC projected for March 2026, the long-anticipated supply tightening is now near.

Key takeaways

For institutional inquiries and treasury consultation

info@carrollparkcapital.com carrollparkcapital.com