3 Checkpoints for Crypto to Attain New Highs in 2026: Bitwise

Crypto markets must cross three so-called checkpoints to be able to attain new peaks in 2026, which embrace the US Senate passing a highly-awaited crypto invoice, says Bitwise chief funding officer Matt Hougan.

“Crypto is off to begin in 2026,” Hougan stated in a notice on Tuesday, however added there are “three huge hurdles standing between us and new all-time highs.” 

Markets are at present down 2% over the previous 24 hours, however have gained 5.6%, or round $170 billion, for the reason that starting of the yr, pushing complete capitalization to a seven-week excessive of $3.3 trillion on Wednesday.

Hougan stated that the Oct. 10 market meltdown, which worn out $19 billion in futures positions in a single day, induced traders to fret {that a} main market maker or hedge fund must wind down.

“These potential gross sales hung over the market like a heavy fog,” stopping a rally in late 2025, he stated.

“One of many causes I believe we’ve rallied to begin this yr is that traders have put October 10 within the rearview.”

Crypto markets shed over $1.2 trillion following the Oct. 10 crash however have proven indicators of restoration in January. Supply: Coingecko

CLARITY Act progressing via Congress

The US Senate is focusing on Jan. 15 for a markup of the CLARITY Act, a course of that includes aligning drafts within the Senate Banking and Agriculture committees and pushing the ultimate invoice to a vote.

“Passage of the CLARITY Act is essential to the long-term way forward for crypto within the US [and would] enshrine core rules into legislation and supply a robust basis for future development,” Hougan stated.

Associated: US lawmakers anticipated to deal with market construction markup in January

The third “checkpoint” is for the broader fairness market to remain intact. Crypto shouldn’t be extremely correlated with shares, “however a pointy collapse would take the shine off of all threat property within the brief time period, crypto included,” Hougan added. 

“If we hit the three milestones above, I believe 2026’s early momentum may have some critical legs.”

Dovish Fed good for long-term positive aspects 

Hougan didn’t point out US central financial institution financial coverage, charge cuts, or liquidity as potential drivers of crypto markets, however different consultants have. 

“The consensus going into 2026 appears to be that the US will run it scorching, from a mixture of fiscal coverage and a dovish Fed,” stated the director of world macro at Constancy, Jurrien Timmer, on Wednesday. 

The Federal Reserve has signaled no speedy charge lower because it approaches its subsequent assembly on Jan. 28, Nick Ruck, director of LVRG Analysis, advised Cointelegraph.