In a fresh interview, Bitwise CIO Matt Hougan shared his view on what the next crypto market cycle could look like. We’ve rounded up the key takeaways.
Bitwise CIO Matt Hougan says the crypto market recovery will take longer than traders expect. The reason: institutional investors and financial advisors have shifted their focus away from digital assets toward real-world blockchain applications like real world asset (RWAs) tokenization and AI.
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“We’ve lost investor attention to other hot trends. I think the next bull market will be slower and less volatile than previous ones,” he told CoinDesk.
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Why Investors Are Moving From Bitcoin to Stablecoins and Tokenization
Hougan noted that during bear markets, participants gravitate toward more tangible sectors. Stablecoins and tokenization feel more familiar and grounded in the real world to traditional investors than bitcoin.
Stablecoin market cap recently hit a record $322B—larger than the foreign reserves of 95 countries, including several developed nations. Citi projects that figure could reach $4T by 2030.
Hougan agrees that traditional finance’s shift toward alternative sectors is contributing to the current crypto downturn and will slow the recovery. But he stressed it’s not the only factor.
“During bear markets when there’s uncertainty, it’s easier for people to turn to something more tangible,” he explained.
Read more: Top RWA Crypto Projects 2026 — Ondo, Maple, Centrifuge
Hougan’s Long-Term Outlook: BTC Price Will Exceed $1M
Despite the investor shift, Hougan maintains a long-term bullish view on bitcoin. He estimates the leading cryptocurrency could surpass $1M over the next decade. Still, he acknowledged that it’s hard to tell whether the market has already bottomed.
“I’m not confident in how, when, or if it has bottomed. I think we need to wait and see how the four-year cycle unfolds,” he added.
Hougan also noted that interest in bitcoin among US registered investment advisors remains at record levels.
“The interest is as high as it’s ever been. I think that’s a very bullish long-term signal,” he said.
