Bitwise’s Matt Hougan Predicts Strong Crypto Year in 2026

• Lyla Velez
• July 27, 2025
• Adoption
• 0 Comments

Matt Hougan, Chief Investment Officer at Bitwise, has stated that he expects 2026 to be a significant year for the cryptocurrency market due to growing institutional involvement.

According to Hougan, institutional adoption and ETF inflows are transforming the crypto landscape, making 2026 pivotal for the sector.

Hougan argues that the classic four-year cycle, defined by Bitcoin halvings, is losing relevance. According to him, institutional adoption and ETF inflows are now more significant, with 2026 expected to be prosperous. He elaborated on this by saying,

“The drivers of the four-year crypto cycle—halving, interest rate cycles, and explosion/blow-up risk—are now diminished in influence. Long-term pro-crypto forces will overshadow the classic cycle, if it exists at all.”

The participation of institutions indicates a shift in market dynamics, reinforcing the importance of ETFs. This change is projected to result in a more stable and sustainable market environment.

The expected rise in ETF-related investment suggests increased capital inflows into Bitcoin and major cryptocurrencies. The market’s reaction remains cautious but optimistic, with expectations of diminished volatility and enhanced regulatory frameworks.

Market structure changes driven by ETF flows are expected over the next five to ten years, impacting how assets like Bitcoin and Ethereum are valued. The role of institutional investors is thereby anticipated to become increasingly critical.