Key Takeaways
- No late 2025 rally sets up stronger gains for 2026.
- Tokenization, stablecoins, and DeFi could drive next year’s market growth.
- Institutional and traditional retail inflows signal rising confidence.
Bitwise Exec Says 2026 Will Be Crypto’s Real Bull Year — Here’s Why
As 2025 draws to a close without the explosive rally many investors expected, Bitwise Chief Investment Officer Matt Hougan believes the stage is set for 2026 to deliver crypto’s real bull market. Speaking at The Bridge Conference in New York City, Hougan explained why the lack of a late-year surge strengthens the outlook for next year rather than weakens it.
A Delayed Rally Sets the Stage for Bigger Gains
Historically, crypto bull markets have followed a four-year cycle — a pattern that has seen rallies give way to sharp pullbacks in years like 2018 and 2022. Hougan said that if Bitcoin and the broader market had “ripped into the end of 2025,” it might have signaled a premature top. Instead, the subdued momentum suggests that 2026 could mark the real breakout year, driven by maturing fundamentals rather than speculative hype.
“The biggest risk was if we ripped into the end of 2025 and then we got a pullback,” Hougan said. “The underlying fundamentals are just too sound to stay down.”
Fundamentals Fueling the Next Bull Cycle
Hougan emphasized that several macro and structural factors are converging to create a robust foundation for growth. He cited stablecoin adoption, tokenization, and institutional inflows as long-term trends too powerful to ignore.
Also Read: Top 10 Crypto Trends for the Next Bull Run
He also pointed to developments like Uniswap’s fee switch proposal, which could reignite interest in decentralized finance (DeFi) and renew faith in crypto’s core innovation layer. “These earlier forces — institutional investment, regulatory progress, stablecoins, tokenization — are too big to keep down,” Hougan said.
Retail Sentiment: Depressed but Poised for Revival
While institutional participation continues to rise, Hougan noted that crypto-native retail investors remain cautious after being hit by events such as FTX’s collapse, failed memecoins, and the altcoin slump. However, he believes this investor fatigue is cyclical — and that traditional retail investors are quietly stepping in via spot Bitcoin ETFs and other regulated avenues.
Also Read: How to Use ChatGPT for Crypto Strategy, Signals, and Sentiment Analysis in 2025
The Bottom Line
With sound fundamentals and growing institutional adoption, Bitwise’s Matt Hougan sees 2026 as crypto’s defining bull year. The quiet end to 2025 may not mark weakness but rather the calm before a powerful uptrend — one built on stronger infrastructure, regulation, and investor maturity.
