Next Crypto Bull Run May Be Slower as Investors Shift Focus, Says Bitwise CIO

Bitwise Chief Investment Officer Matt Hougan believes the next crypto bull market could develop more slowly and with lower volatility as investor attention moves toward artificial intelligence, stablecoins and tokenization.

Hougan said Wall Street firms and registered investment advisors remain interested in bitcoin and digital assets, but many investors are now prioritizing projects tied to real-world financial use cases instead of speculative crypto trading.

According to Hougan, the market has lost some investor attention to fast growing sectors like AI, which may delay a strong recovery in cryptocurrency prices.

Bitcoin Long-Term Outlook Still Remains Strong

Despite short term uncertainty, Hougan maintained his long-term bullish outlook for bitcoin and said he still expects the asset to reach $1 million within the next decade.

Bitcoin remains nearly 50% below its previous all-time high and has fallen around 26% this year. Broader crypto markets have also struggled during the ongoing downturn.

Hougan explained that during bear markets, investors often prefer assets with more visible real world utility. He said stablecoins and tokenization appear more tangible to many traditional investors compared with bitcoin alone.

Interest in stablecoins has continued growing rapidly, with the total market value recently reaching about $322 billion. Analysts from Citi have projected the sector could grow to nearly $4 trillion by 2030 as financial institutions increase blockchain adoption.