Bitwise CIO: Crypto Market's Sustained Growth in 2026 Hinges on Overcoming Three Key Hurdles

BlockBeats News, January 7th, Bitwise Chief Investment Officer Matt Hougan pointed out that for cryptocurrency to sustain its rise in 2026, it must overcome three major obstacles. The primary and most urgent obstacle has already been overcome, that is, avoiding another large-scale liquidation event similar to the 1011 crash. With the recent market stability and no major liquidation events by the end of 2025, these concerns have dissipated.

The second obstacle is U.S. legislation, especially whether the "Cryptocurrency Market Structure Act" can be passed. The bill is progressing through Congress, with the Senate expected to debate it on January 15th, but there are still disagreements on issues such as decentralized finance (DeFi) regulation, stablecoin incentives, and political conflicts of interest. Approving this bill would signify that regulatory principles supporting cryptocurrency are locked into U.S. law, less susceptible to future political changes, thus laying a "solid foundation" for future growth.

The final obstacle is the correlation with the stock market. Hougan stated that cryptocurrency's rise does not require a thriving stock market, but a stock market crash could temporarily drag down all risk assets. Although the market perceives a relatively low likelihood of an economic recession in 2026 and a high likelihood of a U.S. stock market rise, there is still uncertainty ahead.