Bitwise Reveals 4 Explosive Catalysts Poised to Ignite the Next Crypto Bull Run

Crypto's sleeping giants are waking up—and Bitwise just dropped the match.

The institutional domino effect

Wall Street's finally playing catch-up as spot ETFs go mainstream. Too bad it took them a decade to realize digital gold was...gold.

Regulatory clarity (or lack thereof)

SEC's enforcement roulette keeps markets volatile—but every crackdown just proves crypto's here to stay. The harder they fight, the stronger the tech gets.

DeFi's silent revolution

While bankers obsess over CBDCs, real innovation's happening in permissionless protocols. Yield farming 3.0 makes your savings account look like a medieval relic.

The halving effect squared

Bitcoin's supply shock meets Ethereum's burn rate—creating the perfect scarcity storm. TradFi still thinks it's a bug, not a feature.

Four catalysts. One inevitable outcome. The only question is whether traditional finance will FOMO in early...or get left holding bags again.

$120,955 and Ethereum$4,713 are trading near historic highs, Hougan emphasizes developments that could unexpectedly impact the market. He asserts that markets often react to good news that hasn’t been factored into prices yet.

ContentsSignificant Catalyst: Government PurchasesMonetary Policy, Volatility, and ICO 2.0

Significant Catalyst: Government Purchases

The first catalyst Hougan points to is the purchase of Bitcoin by governments. While ETFs and corporate investments have so far dominated the demand landscape, with ETFs amassing 183,126 BTC and corporations securing 354,744 BTC, government involvement remains minimal. The U.S.’s Strategic Bitcoin Reserve is limited to seized assets, and recent decisions by Pakistan and Abu Dhabi reflect only small-scale investments. Nevertheless, discreet actions by countries like the Czech Republic could pivot expectations significantly, potentially adding strength to Bitcoin and altcoin prices.

Hougan stresses that a few robust announcements could quickly recalibrate market expectations and drive momentum in 2026. This potential, even if merely acknowledged, could infuse additional strength into the prices of bitcoin and alternative cryptocurrencies.

Monetary Policy, Volatility, and ICO 2.0

The second catalyst is central banks’ monetary policies. Hougan notes the unusual situation of Bitcoin remaining near its peak in a high-interest environment. While modest interest rate cuts are anticipated by year-end, unpriced factors include signals from the TRUMP administration and the Fed’s dovish stance under Stephen Miran’s “Mar-a-Lago Accord.” If the market witnesses more aggressive rate cuts, Hougan believes Bitcoin could experience significant upward movement.

Bitcoin’s Rolling 30-Day Volatility

As a third catalyst, Hougan foresees a sharp decline in Bitcoin’s volatility following the introduction of spot ETFs in January 2024. A downturn in volatility to levels akin to high-tech stocks could facilitate institutional portfolio allocations of 5% or higher. The substantial net inflow of $5.6 billion into ETFs since July suggests increased flows in the fall.

The fourth could be ICO 2.0. Despite past issues, SEC Chairman Paul Atkins’ “Project Crypto” promises clarity and exemptions for ICOs, AirDrops, and network rewards. Hougan believes this initiative will trigger new capital influx and potentially revive an issuance cycle within the cryptocurrency market.

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