Bitwise CIO: Cryptocurrencies need to overcome three hurdles for continued growth in 2026

PANews reported on January 7th, citing The Block, that Bitwise Chief Investment Officer Matt Hougan stated that the cryptocurrency market started 2026 with an upward trend, but whether this momentum can continue depends on overcoming three key hurdles. The first hurdle has been overcome: the market avoided a large-scale upheaval similar to mid-October 2025. At the end of last year, concerns about forced liquidations of major market makers or hedge funds suppressed prices, but these concerns dissipated as no large-scale liquidations occurred by the end of the year. The second hurdle is the passage of US legislation, particularly the Clarity Act. This bill is currently under consideration in Congress, with the Senate scheduled to amend it on January 15th, but disagreements remain on issues such as DeFi regulation, stablecoin rewards, and conflicts of political interest. Hougan believes that the amendment process is a crucial step towards the bill's approval, and if passed, it will solidify regulatory principles supporting cryptocurrencies, laying the foundation for future growth. The third hurdle is the impact of the stock market. Hougan points out that cryptocurrencies do not rely on a stock market boom, but a sharp short-term stock market sell-off could drag down all risk assets. Current market forecasts suggest a low probability of a recession in 2026 and a higher probability of a rise in US stocks, but uncertainty remains in the coming months. If all three obstacles are overcome, the cryptocurrency rally at the beginning of the year may continue to expand throughout the year.