Bitwise CIO Matt Hougan told CoinDesk that the next bull run in digital assets is likely to be slower and characterized by less volatility, as investors' appetite evolves. The long-time bitcoin bull noted that during the current bear market, with 'doubts swirling,' investors have found 'it easier to reach for something more tangible:' stablecoins and tokenization.
This shift suggests a maturation of market dynamics. Rather than a sharp, speculative spike, Hougan's comments imply a more gradual price appreciation, potentially driven by real-world use cases rather than pure momentum. The move toward stablecoins and tokenized assets could dampen the wild swings historically seen in crypto markets, as these products often involve more predictable, yield-generating mechanisms.
Regulatory clarity could play a key role in this evolution. As frameworks around stablecoins and tokenized securities solidify in jurisdictions like the EU and potentially the US, institutional participation may increase, adding depth and reducing fragility. A slower, less volatile bull run would likely be seen positively by regulators seeking to protect retail investors from extreme price movements.
Market cap dynamics may also shift. If the next rally is led by stablecoins and tokenization, Bitcoin's dominance could decline relative to a broader ecosystem of regulated, asset-backed tokens. This would mark a departure from previous cycles driven primarily by BTC or Ethereum, and could correlate less with traditional macro assets like tech stocks.
Hougan's perspective offers a counterpoint to optimistic forecasts of another parabolic rally. While some traders anticipate a repeat of 2021-style euphoria, his view suggests a more measured path upward—one where investor conviction is built on tangible applications rather than hype alone.