Crypto Markets Dip—Yet Stablecoins, RWAs & Bitcoin Futures Smash All-Time Highs (Bitwise Report)

Crypto's playing Jekyll and Hyde again. While prices tumble, three sectors are quietly breaking records—proving Wall Street still doesn't get decentralization.

Stablecoins: The Unsung Liquidity Heroes

Tether and friends just hit a $160B market cap—traders clearly hedging bets as volatility spikes.

RWAs: Where Blockchain Eats Traditional Finance

Tokenized treasuries now hold $12B. Institutions would rather hold digital bonds than admit they need 24/7 markets.

Bitcoin Futures: Big Money's Backdoor

CME open interest at $8B signals whales are positioning—probably while their compliance officers aren't looking.

Bottom line? The 'smart money' keeps building infrastructure during pullbacks. Retail panic is their discount window.

Quiet Momentum in Stablecoins and RWAs

While token prices dominated headlines, Bitwise’s data shows a different story unfolding under the surface. Stablecoins posted $218 billion in assets under management—up 13.5% from the previous quarter—alongside a 30% surge in transaction volumes.

Tokenized real-world assets (RWAs) gained major traction, jumping over 37% quarter-over-quarter, while regulated Bitcoin futures trading volume and open interest reached all-time highs. These developments indicate growing institutional engagement and pivoting toward asset types with real-world utility or compliance-first design.

“Parts of the crypto market are experiencing raging bull markets,” Hougan noted, citing stablecoins, RWAs, and bitcoin futures as key pockets of growth.

A More Resilient Q2 on the Horizon

Bitwise points to several potential catalysts in Q2 2025. These include increased global liquidity, progress on stablecoin legislation in the U.S., and a rising narrative around bitcoin’s role as a strategic hedge asset.

As central banks turn dovish and major legislative reforms gain traction, crypto infrastructure appears primed for a breakout. The expected repeal of SEC guidance SAB 121 and new banking rules could unlock further institutional participation.

Additionally, with geopolitical instability on the rise, digital assets like bitcoin are being reevaluated as long-term reserve assets by both sovereigns and corporations.

While Q1 may have underwhelmed on price action, Bitwise suggests that the structural groundwork laid during the quarter could lay the foundation for a more powerful rally in the months ahead.

CIO Warns of Fragile Progress Without Congressional Support

In May, Bitwise CIO Matt Hougan issued a stark warning about the fragility of crypto’s momentum, urging Congress to pass lasting regulation.

Bitwise Chief Investment Officer @Matt_Hougan has voiced serious concerns over Congress's ability to pass meaningful crypto regulation.#Bitwise #Cryptohttps://t.co/dYQyGR2HTV

In a note to clients, Hougan praised recent moves by the TRUMP administration—such as the creation of a Strategic Bitcoin Reserve and the rollback of SEC enforcement—but stressed that these executive actions are not permanent. Without legislation, he cautioned, future administrations could easily reverse course.

Despite his long-term optimism—predicting new all-time highs and even a potential $200,000 Bitcoin price—Hougan said the industry faces a “rough summer” if lawmakers fail to deliver regulatory clarity. His comments reflect growing concern within the digital asset space that political support alone isn’t enough to secure crypto’s future.