Bitwise CIO flags three hurdles crypto must clear for a sustained 2026 rally

Bitwise Chief Investment Officer Matt Hougan outlined three critical hurdles the crypto market must overcome to sustain its early 2026 gains throughout the year. The first hurdle, avoiding a major market dislocation similar to the October 10 liquidation event, is considered largely cleared, as significant forced unwinding of positions did not materialize by year-end. The second major factor is the passage of U.S. crypto market structure legislation, specifically the Clarity Act, which is currently moving through Congress with a Senate markup targeted for January 15. Hougan believes its passage would solidify pro-crypto regulatory principles. The final hurdle involves the broader equity market; while crypto doesn't require a booming stock market, a sharp selloff in equities could negatively impact risk assets in the short term. If these three factors align favorably, Hougan suggests the early-year rally could gain significant momentum, supported by growing institutional participation and real-world use cases.

(Source：The Block)