Jan 7, 2026
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Bitcoin, ETH, Dogecoin Rally Faces 3 Key Checkpoints: Bitwise CIO
In early 2026, crypto markets saw a strong start, with Bitcoin and Ethereum each up 7% year-to-date, while Dogecoin surged 29%. Bitwise CIO Matt Hougan outlines three key factors for sustaining this momentum:
- Systemic Stability: Avoidance of major market disruptions similar to the $19 billion liquidation event on October 10, 2025, which had lingering psychological effects. Confidence is growing that such events are unlikely in the near term.
- Legislative Progress: The CLARITY Act, aimed at establishing a crypto market structure, is moving through Congress. Success here is pivotal for long-term growth, as it would solidify regulatory support and prevent future policy reversals.
- Equity Market Stability: While crypto is not highly correlated with stocks, significant equity drawdowns could negatively impact all risk assets, including crypto. Current predictions suggest low recession probability and potential S&P 500 gains in 2026.
If these hurdles are cleared, Hougan believes the early 2026 rally could lead to sustained growth, driven by increased institutional adoption and real-world applications like stablecoins and tokenization.
