Asset manager Bitwise sees 3 tests for crypto’s 2026 rally

Crypto asset manager Bitwise outlined three key conditions necessary for the crypto market, which started 2026 strongly, to reach new all-time highs. The first test is the absence of a major market shock, like the large liquidation event in late 2025, which CIO Matt Hougan believes the market has likely passed. The second crucial test involves U.S. legislation, specifically the proposed crypto market structure bill moving through Congress. Passage of this bill is viewed as a critical milestone to prevent a future administration from reversing the current pro-crypto regulatory stance, though disagreements on DeFi and stablecoins remain. The final requirement is a reasonably stable equity market backdrop; a sharp selloff in the S&P 500 would likely negatively impact all risk assets, including crypto. Despite these tests, Bitwise maintains a constructive outlook, citing growing institutional adoption and tokenization, suggesting momentum could be durable if policy and markets cooperate.

(Source：CoinDesk)