CLARITY Act Could Trigger Massive “Flywheel Effect,” Bitcoin Could Hit $150,000: Ric Edelman

Legendary investor and financial adviser Ric Edelman says the upcoming CLARITY Act could become a major turning point for the Bitcoin and crypto market.

Specifically, he said it could push Bitcoin above $150,000 before the end of 2026. He shared this view in a recent interview with John Gillen on the Milk Road podcast.

Key Points

$150K Bitcoin Possible by 2026 End

Edelman said the crypto market may soon enter another powerful expansion phase once regulatory clarity arrives in the United States. According to Edelman, the passage of the CLARITY Act could mark the moment Wall Street receives the “green light” to fully engage with crypto assets.

“I would not at all be surprised to see Bitcoin end the year above $150,000,” Edelman said during the discussion. He added that he still expects Bitcoin to eventually reach $500,000 before the end of the decade.

Traditional Retirement Investing Is “Out of Date”

During the interview, Edelman explained why he believes traditional portfolio strategies are becoming obsolete due to increasing human longevity.

For decades, many financial advisers have recommended the classic “60/40 portfolio,” where investors hold 60% stocks and 40% bonds. As investors age, advisers typically reduce stock exposure and increase safer assets like bonds and treasuries.

However, Edelman argued that this model no longer works in a world where people are living much longer.

He pointed to his research with institutions such as the Stanford Center on Longevity and MIT AgeLab, noting that many financial systems still assume people will die around age 85 or 90.

According to Edelman, if people increasingly live to 100, older retirement strategies may fail because investors could run out of money before they die. Because of that, he believes investors should maintain far more exposure to growth assets throughout their lives.

Instead of the traditional 60/40 strategy, Edelman proposed what he called an “80/20” model. In this, 80% of a portfolio remains in equities and growth-focused assets even into old age.

Meanwhile, he believes crypto deserves a major role within that allocation.

“And if you’re going to have 80% of your money in equities, at least 10 of the 80 ought to be in crypto,” Edelman said. He added that younger, growth-oriented investors could allocate as much as 40% to digital assets.

Bitcoin, Ethereum, Solana — Or All Three?

Edelman also addressed how investors may approach crypto allocation. Rather than endorsing a single asset, he said investors can choose different strategies depending on their risk tolerance and market view.

He acknowledged Michael Saylor’s case for holding only Bitcoin, but also pointed to the growing use cases for Ethereum and Solana.

According to Edelman, many investors now use a market-cap weighted approach, allocating larger portions to Bitcoin while also holding Ethereum or Solana.

He also highlighted crypto infrastructure companies like Coinbase, Robinhood, and stablecoin issuers as another way investors can gain exposure to the sector.

CLARITY Act Could Open Wall Street Floodgates

Edelman believes the biggest catalyst ahead for crypto may be regulatory clarity in the United States. He argued that once the CLARITY Act is passed, traditional financial firms may rapidly expand crypto adoption across their businesses.

According to him, this could create a major “flywheel effect” similar to previous Bitcoin bull runs.

Edelman specifically pointed to Morgan Stanley, noting that the firm manages roughly $7 trillion in assets and has already encouraged advisers to begin allocating small percentages of portfolios to crypto.

He said even a modest 2% to 3% allocation across large Wall Street firms could drive enormous capital flows into Bitcoin and the broader crypto market.

“Well, 3% of $7 trillion is going to cause Bitcoin’s price to rise massively,” Edelman said.

He added that growing institutional adoption could accelerate momentum across the industry as rising prices attract more participation from investors and firms.

AI and Crypto Could Grow Together

Edelman also rejected the idea that investors must choose between artificial intelligence and crypto investments.

Instead, he argued that both industries may benefit from each other as adoption grows.

He pointed to examples of Bitcoin mining companies pivoting toward AI infrastructure and data center operations, saying the technologies are already beginning to merge in practical ways.

According to Edelman, the combination of AI growth, institutional crypto adoption, and clearer regulation could create a powerful long-term expansion cycle for digital assets.

“You ought to be engaging in it,” he said, warning investors against remaining on the sidelines while the industry evolves.