Haciyev Reşit 
As volatility continues in the cryptocurrency markets, Matt Hougan, Chief Investment Officer at Bitwise Asset Management, shared the key structural and fundamental dynamics that could trigger Bitcoin and altcoins’ exit from the bear market. Hougan noted that short-term uncertainties persist, but the market does not appear entirely weak, and some indicators suggest the formation of a bottom. While the process is still in its early stages, he highlighted that technological advancements, steps toward institutional adoption, and infrastructure investments in the crypto ecosystem are increasingly signaling structural changes that could support a bear market recovery.
The “Agentic Finance” Era Begins
The first major theme Hougan emphasized is “agentic finance,” referring to autonomous, agent-driven financial applications. In this model, AI-powered financial agents can analyze markets, manage risk parameters, and execute trades automatically on behalf of users. This reduces the need for individual investors to have deep technical knowledge while making decision-making more systematic and efficient. Actions by major companies like Coinbase in this area indicate that crypto finance is entering a more mature phase.
According to Hougan, agentic finance applications not only increase trading efficiency but also simplify the user experience, enabling broader adoption of crypto markets. Scaled implementation of such systems could also attract new capital into the ecosystem.
“It’s still early, but if you look carefully, you can start to see developments that could help pull us out of the bear market.”
Institutional Adoption of DeFi
Hougan also highlighted the institutional embrace of decentralized finance (DeFi) as a critical factor. For example, BlackRock’s partnership with the DeFi protocol Uniswap demonstrates a concrete bridging between traditional finance and the blockchain ecosystem. Institutional DeFi growth could bring larger and more stable capital inflows to crypto markets. This not only boosts liquidity but also helps restore market confidence, potentially accelerating Bitcoin and altcoins’ exit from the bear market.
Quantum-Resistant Cryptography and Security
Hougan drew attention to solutions being developed to address potential future security risks posed by quantum computing. Advances in quantum-resistant cryptography are considered crucial for ensuring the long-term security of blockchain networks. These developments enhance trust for all market participants, especially long-term investors, and strengthen the sustainability and institutional adoption of the crypto ecosystem.
Tokenization of Real-World Assets (RWA)
Another important trend is the tokenization of real-world assets on blockchain. Bringing traditional assets such as bonds, real estate, funds, and commodities onto the chain increases liquidity, transparency, and financial accessibility. This structural transformation moves crypto beyond a short-term speculative instrument, supporting its evolution into an infrastructure technology for the global financial system.
Structural Transformation Is Key to Exiting the Bear Market
According to Hougan, Bitcoin and altcoins’ recovery will not be driven solely by short-term price movements but by deeper, lasting structural transformations. Increased institutional adoption, accelerated technological innovation, and maturation of blockchain infrastructure are the foundational pillars of this process. Hougan emphasizes that developments such as agentic finance, institutional DeFi integration, quantum-resistant security solutions, and RWA tokenization could accelerate the transition of the crypto ecosystem from a speculative market to an integral part of the global financial system. These dynamics are expected to serve as key catalysts shaping the overall direction of crypto markets in 2025–2026.
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