Bitwise Chief Investment Officer Matt Hougan stated in a recent blog post that positive signals regarding Bitcoin bottoming are beginning to emerge, following sharp cryptocurrency market declines since October 2025. Hougan cited Bitcoin's rise since early July, renewed inflows into spot Bitcoin ETFs, and recovering investor sentiment as indicators, though he cautioned it remains too early to declare the bear market completely over. He argued the next crypto bull market will be driven by the convergence of cryptocurrency and traditional finance, focusing on trends such as stablecoins, tokenization, 24-hour trading, instant payments, and institutional DeFi.
Bitwise CIO Identifies Bitcoin Bottom Signals
Hougan acknowledged that Bitcoin's rise since early July, the renewed inflows into spot Bitcoin ETFs, and the recovery in investor sentiment are positive signs of a bottoming out. However, he stated it is still too early to say that "the bear market is completely over" for the current situation. Bitwise's CIO stated that the bad period in the crypto market is about to end.
Hougan Predicts Bull Market Driven by Two Key Groups
Hougan claimed that the new bull market will be based on the convergence of crypto and traditional finance. He argued that the next crypto bull market could be driven by Hyperliquid-style projects and large financial companies like Robinhood. According to Hougan, the next cryptocurrency bull market will likely be driven by trends such as stablecoins, tokenization, 24-hour trading, instant payments, and institutional DeFi.
Hyperliquid and Robinhood Cited as Prime Examples
The first group consists of crypto protocols that generate real revenue, such as Hyperliquid (HYPE), operating in decentralized derivatives markets. The second group comprises publicly traded financial companies like Robinhood (HOOD) that aim to integrate traditional finance with crypto infrastructure. According to Hougan, these two structures are among the best examples of how to benefit most from the combination of traditional finance and blockchain technology.
Hougan Highlights Revenue-Generating Protocols and Token Economies
Bitwise's CIO said of the hype, "I think even if the price doubles, it will still have reasonable valuation." He predicted that more crypto projects could adopt similar token economies in the coming period, citing altcoins such as Uniswap (UNI), Aave (AAVE), and Morpho (MORPHO) as examples. Hougan concluded by arguing that while previous bull markets were largely fueled by expectation and speculation, the new cycle will be built on real use cases, revenue-generating applications, and structural transformation within the financial sector.
FAQ
What signals does Bitwise CIO Matt Hougan see for Bitcoin bottoming?
Hougan cited Bitcoin's rise since early July, renewed inflows into spot Bitcoin ETFs, and recovering investor sentiment as positive bottom signals, though he stated it is too early to declare the bear market completely over.
What will drive the next crypto bull market according to Hougan?
Hougan argued the next bull market will be driven by the convergence of crypto and traditional finance, focusing on trends such as stablecoins, tokenization, 24-hour trading, instant payments, and institutional DeFi, with examples including Hyperliquid-style protocols and companies like Robinhood.
Which altcoins did Hougan mention as examples of token economy adoption?
Hougan cited Uniswap (UNI), Aave (AAVE), and Morpho (MORPHO) as examples of altcoins that could adopt similar token economies focused on real revenue generation.
