BlockBeats News, January 7th, Bitwise Chief Investment Officer Matt Hougan pointed out that in order for cryptocurrency to sustain its upward trajectory in 2026, it must overcome three major obstacles. The first and most pressing obstacle has already been overcome, which is to prevent another large-scale liquidation event similar to the May 19th crash. With the recent market stability and no major liquidation events by the end of 2025, these concerns have dissipated.
The second obstacle lies in U.S. legislation, specifically whether the “Cryptocurrency Market Structure Act” can be passed. The bill is advancing through Congress, with the Senate expected to debate it on January 15th, but there are still disagreements on issues such as decentralized finance (DeFi) regulation, stablecoin incentives, and conflicts of political interests. Approval of this bill would signify that the regulatory principles supporting cryptocurrency are locked into U.S. law, less susceptible to future political changes, thus laying a “solid foundation” for future growth.
The final obstacle is the correlation with the stock market. Hougan stated that cryptocurrency’s rise does not require a booming stock market, but a stock market crash could temporarily drag down all risk assets. While the market views the likelihood of an economic recession in 2026 as relatively low and sees a strong possibility of a rise in the U.S. stock market, uncertainties still lie ahead.
