Bitcoin and Ethereum have seen sharp fluctuations in recent weeks, with Bitcoin holding above $90,000 and Ethereum staying above $3,100. A key development during this period is the successful launch of Ethereum’s Fusaka upgrade, designed to improve transaction efficiency and scalability across the blockchain. As the technology matures, a noticeable shift is also taking place among major financial institutions. Larry Fink of BlackRock has softened his formerly critical stance toward Bitcoin, and Bank of America wealth advisors are now recommending cryptocurrency exposure through ETFs. Against this backdrop, Matt Hougan, Chief Investment Officer at Bitwise Asset Management, offers a detailed look at the present state and future outlook of the crypto market.
Matt explains that the crypto market has recently faced volatility driven by several negative events. He anticipates that the rest of the year may trend sideways as Bitcoin and other tokens work through this temporary disruption. “Crypto is sort of working off some negative events that happened over the last month,” he notes. A large liquidation event in October played a major role in weakening sentiment, and broader concerns about a possible economic downturn in 2026 continue to influence current market behavior. Despite these factors, Matt remains optimistic about the medium term. He believes that a strong bull market will begin forming as we move closer to 2026.
A major point in the conversation centers on the impact of the Fusaka upgrade for Ethereum. The upgrade is expected to improve transaction throughput and reduce costs, which will ultimately create a better user experience. Matt stresses that advancements like Fusaka are critical for Ethereum’s long-term value because increased efficiency helps the network compete for market share and strengthens the value proposition for ETH holders.
Regulation is another essential factor shaping the future of digital assets. Matt notes, “What we need on the legislation and regulatory front is for them to enshrine the positive trends that are in the market right now.” Clear and comprehensive market structure laws would give entrepreneurs and institutional investors the confidence needed to expand further into the crypto space. Encouragingly, progress appears to be underway in the Senate, with bipartisan efforts aimed at improving regulatory clarity. Matt believes that if these laws pass, both Bitcoin and Ethereum could reach new all-time highs by 2026.
Institutional adoption continues to gain momentum as major financial firms integrate cryptocurrency into their offerings. Matt points out that the big four wirehouses have begun giving clients direct access to Bitcoin, which demonstrates a major shift in how traditional finance views digital assets. As more institutional capital flows into crypto, this influx is expected to push digital asset prices higher.
Speculation has also emerged about Michael Saylor and whether he might break from his long-standing commitment to never sell Bitcoin. Matt firmly dismisses this possibility. He explains that the structure of Saylor’s debt does not pose a threat to his Bitcoin position. With low interest payment requirements and debt maturities extending through 2027, Saylor’s holdings remain secure.
In conclusion, while the crypto market may appear uncertain in the short term, the long-term outlook remains strong. Upgrades like Fusaka, increasing regulatory clarity, and deeper institutional participation suggest that the market is preparing for its next major growth cycle. Investors and entrepreneurs should stay alert as these advancements unfold. Looking toward 2026, the broader movement toward sustainable finance, impact investing, and blockchain integration supports a compelling case for optimism in the cryptocurrency sector.