BlackRock, the world's largest asset manager, has released a report predicting that increasing U.S. federal debt will accelerate institutional adoption of cryptocurrencies in 2026. The report indicates that as government borrowing rises, traditional financial hedges may weaken, leading institutions to consider digital assets like Bitcoin as alternative hedges. The report highlights BlackRock's $100 billion allocation in Bitcoin ETFs as evidence of growing institutional interest. Analysts suggest Bitcoin could surpass $200,000 by next year. Additionally, the report underscores the importance of stablecoins in connecting traditional finance with digital liquidity and notes that AI-driven demand for computing power is benefiting Bitcoin miners through energy agreements and data center leasing.