CoinDesk
Bitwise chief investment officer Matt Hougan expects the next crypto bull market to arrive more slowly and with lower volatility than past cycles, arguing Wall Street's attention has drifted from pure digital assets to real-world applications such as tokenization and artificial intelligence. In an interview with CoinDesk, Hougan said investors have "lost attention to other hot trends," most notably AI, and that "the coming bull market will be slower and less volatile [than] in the past."
Despite Bitcoin down roughly 26% year-to-date and still about 50% below its October record high, Hougan said interest from registered investment advisors and institutional firms "is as high as it's ever been" — a "very bullish long-term signal" he anchors to a $1 million-plus Bitcoin thesis over the next decade, with less certainty on timing or the four-year cycle's bottom.
Why it matters
Hougan frames the shift in investor appetite around tangibility. "In bear markets, with doubts swirling, it's easier for them to reach for something tangible. Stablecoins and tokenization are more tangible and 'real-world' to most people than bitcoin." The combined market cap of stablecoins recently hit a record $322 billion — more than the foreign exchange reserves of 95 countries, per Citi — with a $4 trillion 2030 projection. The broader CoinDesk 20 Index has shed 34% alongside Bitcoin's slide.
Market impact
May data highlights the divergence: combined crypto exchange volumes fell 3.45% to $4.41 trillion, the lowest since September 2024, while RWA perpetual futures volumes rose 10.4% against the trend to a new all-time high. Hougan concedes the tradFi attention shift is not the primary driver of Bitcoin's decline but agrees with other Bitcoin maximalists that it is contributing and likely to slow any recovery. Tokenization-linked chains such as Stellar have also been hit this year, even as XLM holds an 8.9% gain.
Frequently asked questions
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Why does Bitwise's CIO expect the next crypto bull run to be slower?
Matt Hougan argues Wall Street attention has shifted from pure digital assets to real-world applications like tokenization and AI, which spreads capital and dampens the speculative intensity of past cycles.
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What did Hougan say about institutional interest in Bitcoin right now?
Despite BTC down roughly 26% YTD and about 50% off its October record, Hougan said RIA and institutional interest "is as high as it's ever been" and called it a very bullish long-term signal.
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Why are stablecoins and tokenization gaining ground in a bear market?
Hougan said investors "reach for something tangible" when doubts swirl — stablecoins and tokenization feel more real-world and utility-driven than Bitcoin to many institutional buyers.
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How large is the stablecoin market and where could it go?
Combined stablecoin market cap recently hit a record $322 billion — larger than the FX reserves of 95 countries — with Citi projecting $4 trillion by 2030.
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What did May trading data show about RWA and overall exchange volumes?
Combined crypto exchange volumes fell 3.45% in May to $4.41 trillion, the lowest since September 2024, while RWA perpetual futures volumes rose 10.4% against the trend to a new all-time high.
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