Bitcoin and Ethereum could potentially set new highs by 2026, according to insights from Bitwise chief investment officer Matt Hougan. Speaking at The Bridge conference in New York City, Hougan expressed increased confidence in a market boom for 2026, especially since a rally at the end of 2025 did not materialize.
Hougan indicated that a late 2025 surge would have aligned with the established four-year market cycle, which often predicts a bear market in the following year, reminiscent of downturns seen in 2022 and 2018. He stated, “The biggest risk was if we ripped into the end of 2025 and then we got a pullback,” underlining his relief that this scenario has not occurred.
The analyst emphasized the ongoing interest in the Bitcoin debasement trade, stablecoins, and tokenization, suggesting these factors would drive further market growth. Hougan also highlighted the potential impact of Uniswap”s recent fee switch proposal, which he believes could revitalize interest in the decentralized finance (DeFi) sector over the coming year.
“I think the underlying fundamentals are just so sound,” Hougan remarked. He pointed to key drivers such as institutional investment, regulatory advancements, and the growing significance of stablecoins and tokenization as forces that cannot be easily suppressed. He is optimistic that 2026 will be a favorable year for cryptocurrency markets.
While Hougan remains hopeful about the prospects for major cryptocurrencies, he does not align entirely with the more bullish predictions from other industry figures. Notably, Maelstrom Fund”s Arthur Hayes and Fundstrat”s Tom Lee have forecasted that Bitcoin could reach $250,000 and Ethereum could hit $15,000 before 2025 concludes. Currently, Bitcoin is trading at $101,762, and Ethereum at $3,416, which would require significant percentage increases to meet these targets.
In discussing the current market dynamics, Hougan attributed the recent pullback to “crypto-native retail,” noting that many early investors have faced limited upside due to substantial sell-offs. This sentiment reflects a broader disappointment among those who anticipated a repeat of the explosive growth seen during the 2020-2021 bull market. Conversely, Hougan pointed out that traditional finance retail investors are still showing a strong interest in crypto, particularly evident in the increase of inflows into spot crypto exchange-traded funds over the past two years.
As the landscape evolves, the resilience of cryptocurrency markets will be tested in the coming months, with the anticipation of significant developments that could shape trading strategies and investment decisions.
