Bitwise Asset Management's chief investment officer, Matt Hougan, says the next crypto bull run likely won't match the wild spikes of previous cycles. Investors are changing what they want, and that's reshaping how the market moves.
Why the next rally might look different
Hougan expects the coming upturn to be slower and less volatile. He points to a shift in investor appetite. During the current bear market, people have been reaching for more tangible assets — specifically stablecoins and tokenized real-world assets — instead of chasing speculative tokens. That preference could mute the explosive price moves seen in 2017 and 2021.
Stablecoins offer a dollar-pegged haven without leaving the crypto ecosystem. Tokenization brings real estate, bonds, and other traditional assets onto blockchains. Both give investors something concrete to hold when prices are shaky.
What this means for market behavior
If Hougan is right, the next bull run won't be a straight line up. Smaller, more frequent corrections could replace the gut-wrenching 30% drops that used to define crypto cycles. Fewer newcomers piling into meme coins or leveraged trades might keep the frenzy in check.
The Bitwise CIO didn't give a specific timeline for when the next rally might start. He also didn't predict price targets. The focus instead is on structure: how the market's foundation is hardening, even while sentiment remains cautious.
Tangible assets gain favor
Tokenization has been a quiet driver during the downturn. Major financial firms like BlackRock and Fidelity have explored putting funds on-chain. Stablecoin supply has held up despite the bear market, with the total market capitalization of the largest stablecoins staying above $120 billion for most of 2023. Hougan sees these as signs that investors want utility, not just speculation.
The question now is whether that demand will accelerate when prices eventually turn up. If it does, the rally could last longer — just with fewer heart-stopping peaks.
