“As we get into the next technological cycle in crypto, I think sort of the secular trends powering cryptos growth will overwhelm the macro trends,” Hougan said.

However, he expects a crypto bull market to start to take hold entering 2023, despite a looming recession. “We’re also dealing with some short term regulatory headwinds, including what was expected to be sort of a tumultuous fall for crypto from a regulatory perspective.” “We’re still working through the last of the deleveraging process,” Hougan said. SEC’s approval of bitcoin futures ETFs, Hougan noted.įor the remainder of the year, the crypto market could continue to be volatile, according to Hougan. The launch of Ethereum in 2015 and the rise of the initial coin offering frenzy afterwards contributed to the crypto boom in 2017, while the 2021 bull market was mostly driven by the growth of decentralized finance and non-fungible tokens and the U.S. Coinbase, for example, was founded in 2012.

In Bitcoin’s early-days the rally in 20 was driven by the increase of crypto exchanges, according to Hougan. What’s driving the market cycle, instead, was useful innovations in the space, Hougan said in an interview with MarketWatch. Hougan also argued that the reduced supply in bitcoin is not enough to drive outsized price moves, and the halving events should already be priced in, as their timing is known to investors. However, bitcoin halvings may not be sufficient to explain crypto cycles, according to Matt Hougan, chief investment officer at Bitwise Asset Management.īitcoin halvings don’t always sync with the big price moves in crypto, Hougan noted. It’s a popular narrative that crypto market cycles tend to coincide with bitcoin halvings, a process where the block reward given to the crypto’s miners is cut in half after every 210,000 blocks mined, or about every four years.Īccording to historical patterns, a bitcoin halving event is often followed by a one-year bull market, a one-year bear market, and two years of recovering, some said. Is trading 10% higher from seven days ago. Rose 12.8% while another dog-themed token, Shiba Inu Rallied 32% over the seven-day stretch to around $1,534. Gained 13.4% over the past seven days, and was trading at around $22,844 on Thursday, according to CoinDesk data. Subscribe Here to Distributed Ledger Crypto in a snap

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