Bitcoin’s 4-Year Cycle Over? Bitwise CIO Predicts Safer Crypto Market as Inflows Surge and Altcoins Rally

Is the crypto winter finally thawing? Bitwise's chief investment officer thinks so—pointing to surging institutional inflows and a resurgent altcoin market as signs of a healthier ecosystem.

Forget the doomscroll. Bitcoin's notorious 4-year boom-bust cycle might be giving way to something resembling...gasp...stability. Or at least fewer white-knuckle drops.

Altcoins join the party. While BTC dominates headlines, Ethereum, Solana, and other tokens are quietly posting double-digit gains—because what's a crypto rally without some speculative froth?

Wall Street's late as usual. Traditional finance spent years dismissing crypto, only to pile in now that the SEC's rubber-stamped ETFs. Typical.

Institutional Inflows and ETF Demand Reshape the Market

Instead of halving-driven volatility, the market is now being influenced by long-term capital inflows and regulatory progress.

The U.S.-approved spot Bitcoin ETFs have attracted over $14 billion in net inflows, allowing mainstream investors to access crypto without managing private keys or exchanges. Hougan notes that institutions like pension funds and hedge funds are building sustainable positions, reducing reliance on retail speculation.

Adding to the momentum is the GENIUS Act, signed into law in early 2025, offering clearer guidelines for crypto operations in the U.S. This clarity has sparked a wave of institutional confidence, paving the way for strategic investments in both bitcoin and Ethereum, which now has over 33 million ETH staked, according to BeaconScan.

With market cycles becoming less predictable, investors are focusing on altcoins with real-world utility. XRP, despite its lengthy legal battle with the SEC, has re-emerged as a strong contender.

Its growing adoption in cross-border payments and support from global financial entities, including investment interest from the UAE, position it as one of the top altcoins to watch. Some analysts believe XRP could surpass $5 in the coming cycle, driven by its enterprise use case and international traction.

Hougan sees 2026 as a potential breakout year, not for explosive spikes, but for durable, steady growth. For investors, this may trigger a shift from trying to time cycles to understanding long-term trends, and that could be crypto’s biggest adaptation yet.

Cover image from ChatGPT, BTCUSD chart from Tradingview