Bitwise CIO says bitcoin will break 4-year cycle and set new all-time highs in 2026

Bitwise Chief Investment Officer Matt Hougan anticipates that Bitcoin will break its traditional four-year market cycle and achieve new all-time highs in 2026, despite current market pullbacks. Hougan argues that factors driving the historical cycle are weakening, citing the diminishing impact of halvings, expected falling interest rates in 2026, and reduced leverage-driven risk following recent liquidations. Crucially, he expects accelerated institutional adoption as major platforms like Morgan Stanley and Wells Fargo begin allocating to digital assets, supported by a pro-crypto regulatory shift. Furthermore, Hougan forecasts that Bitcoin's volatility will continue to decline, potentially falling below that of assets like Nvidia stock, and its correlation with equities will decrease. This combination of strong returns, lower volatility, and reduced correlation is expected to attract tens of billions in new institutional investment.

(Source：The Block)