Despite muted market performance heading into late 2025, Bitwise’s Matt Hougan believes 2026 will mark the next major crypto bull run.
Bitwise Chief Investment Officer Matt Hougan told during The Bridge Conference in New York City that he’s now “more confident than ever” that 2026 will be crypto’s breakout year, especially since the current cycle has not followed the traditional end-of-year rally pattern.
According to Hougan, a strong rally in late 2025 would have aligned with the historical four-year cycle, suggesting a possible market top and subsequent correction. Instead, the absence of such a rally indicates that the next leg higher may just be delayed — not canceled.
“The biggest risk was if we ripped into the end of 2025 and then got a pullback,” Hougan said. “The fundamentals are simply too strong to stay down.”
Why 2026 Could Be the Year for Crypto
Hougan highlighted several key trends expected to drive the next crypto expansion:
- Institutional investment growth in Bitcoin and Ethereum.
- Rising adoption of stablecoins and tokenized assets.
- Increasing interest in decentralized finance (DeFi) following Uniswap’s fee switch proposal.
“Institutional inflows, regulatory progress, stablecoins, tokenization — these are too big to suppress. I think 2026 will be a good year,” he added.
At the same time, the crypto-native retail segment remains subdued, still recovering from past losses linked to FTX, the memecoin bust, and the October 10 liquidation wave. Hougan believes this “depressed retail sentiment” could set the stage for an even stronger rebound when confidence returns.
Bitcoin and Ethereum Still Have Room to Run
While Hougan doesn’t expect the explosive predictions made by Arthur Hayes and Tom Lee — who forecast Bitcoin at $250,000 and Ether at $15,000 — he still sees potential for both assets to hit new highs by 2026.
As of now, Bitcoin trades around $101,700 and Ethereum near $3,400, leaving significant upside for both if market momentum strengthens.
“Crypto native retail is sitting this one out,” Hougan said. “But traditional retail — like my uncle — is moving into crypto through ETFs. That side of the market is still alive.”
The current sideways movement, Hougan suggests, is likely the calm before the next major expansion phase. With institutional adoption deepening and regulatory clarity improving, 2026 may mark the beginning of the next great crypto bull cycle, not its end.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.