July 27, 2025
5 min read
Coin World
Bitwise CIO predicts 2026 crypto boom fueled by ETFs, regulatory clarity, and institutional capital, signaling a shift from halving-driven cycles.
Bitcoin News Today: Crypto Market's 2026 Boom Fueled by ETFs and Regulation as Halving Cycles Lose Influence
Matt Hougan, Chief Investment Officer of Bitwise Asset Management, has challenged the traditional four-year crypto market cycle, forecasting a sustained boom in 2026 driven by institutional adoption, regulatory clarity, and ETF-driven capital flows rather than Bitcoin halving events. Hougan emphasized that the impact of Bitcoin’s halving events is diminishing, stating, “Every halving is half as significant as the previous one.” The recent block reward reduction to 3.125 BTC exemplifies this trend, signaling weakening cyclical forces that once primarily drove price surges. Instead, Hougan highlighted the 2024 launch of Bitcoin and Ethereum ETFs as key catalysts for long-term demand. These ETFs enable institutional investors such as pensions and endowments to allocate capital with multi-year strategies, resulting in steady and sustained capital inflows that contrast sharply with the volatility of past retail-driven cycles. Regulatory progress also underpins the projected market growth. The July 2025 passage of the GENIUS Act alongside increased Wall Street investments in crypto infrastructure mark transformative developments fostering broader acceptance within traditional financial systems. Hougan described this as a “sea change” for the industry, although he cautioned about risks posed by underregulated crypto treasury firms that could disrupt market stability. Hougan envisions a “flywheel” effect where regulatory advancements and institutional strategies create a self-reinforcing cycle of growth. This structural shift suggests the crypto market is transitioning from speculative boom-and-bust patterns to a model prioritizing long-term stability and institutional participation. While volatility remains a concern, this evolving consensus points to a crypto market increasingly defined by ETF-driven liquidity and regulatory frameworks, potentially avoiding the sharp boom-bust cycles of the past. Bitwise’s focus on this paradigm positions it to capitalize on opportunities for long-term investors in an increasingly institutionalized landscape.Source: Originally published at Ainvest on Sun, 27 Jul 2025