Bitwise CIO Matt Hougan Says Bitcoin Bottom Signals Are Emerging, Cites Crypto-TradFi Convergence
Key Takeaways
- •Bitwise CIO Matt Hougan identified Bitcoin's gains since early July, renewed spot Bitcoin ETF inflows, and improved sentiment as signs that a market bottom may be forming.
- •Hougan cautioned that it is still too early to confirm the bear market has ended, despite indications that the downturn may be nearing its conclusion.
- •The next crypto bull market is expected to be driven by the convergence of digital assets and traditional finance rather than speculation alone.
- •Hougan highlighted revenue-generating protocols such as Hyperliquid and traditional finance firms like Robinhood as representative beneficiaries of this convergence.
- •Key trends shaping the upcoming cycle include stablecoins, tokenization, 24-hour trading, instant payments, and institutional DeFi, areas where major financial institutions are already building infrastructure.
Bitwise Chief Investment Officer Matt Hougan said in a recent blog post that early positive signals are emerging for Bitcoin and for a possible market bottom after the cryptocurrency market's sharp declines since October 2025.
Bitwise is one of the largest crypto-focused asset managers in the United States and among the issuers of spot Bitcoin ETFs approved by the SEC in January 2024, products that have become a primary conduit for institutional exposure to digital assets.
The assessment comes as investors continue to debate whether the market has already reached a bottom and when a new bull cycle could begin. Hougan pointed to Bitcoin's rise since early July, renewed inflows into spot Bitcoin ETFs, and an improvement in investor sentiment as constructive signs that a bottoming process may be taking shape.
However, Hougan also cautioned that it is still too early to say that "the bear market is completely over." While he argued that the difficult period for the crypto market may be nearing its end, he said the next bull market is likely to be rooted in the convergence of cryptocurrency and traditional finance.
According to Hougan, the next cryptocurrency bull market could be driven by Hyperliquid-style projects as well as major financial companies such as Robinhood. He said the cycle is likely to be shaped by trends including stablecoins, tokenization, 24-hour trading, instant payments, and institutional DeFi. These are areas where major banks, payment networks, and brokerages have already begun building infrastructure, with several launching tokenization pilots and stablecoin-based settlement initiatives over the past year.
Hougan described two broad groups that he believes illustrate this shift. The first includes crypto protocols that generate real revenue, such as Hyperliquid (HYPE), which operates in decentralized derivatives markets. The second includes publicly traded financial companies such as Robinhood (HOOD), which are seeking to integrate traditional finance with crypto infrastructure.
In Hougan's view, these two structures are among the clearest examples of how market participants may benefit from the combination of traditional finance and blockchain technology.
Speaking about Hyperliquid, Hougan said, "I think even if the price doubles, it will still have reasonable valuation." He also said more crypto projects could adopt similar token economies in the coming period, citing Uniswap (UNI), Aave (AAVE), and Morpho (MORPHO) as examples. These projects represent major decentralized exchanges and lending platforms that have collectively processed hundreds of billions of dollars in cumulative trading and borrowing volume.
Hougan concluded that previous crypto bull markets were driven largely by expectations and speculation, while the next cycle will be built around real use cases, revenue-generating applications, and structural change within the financial sector.