The Chief Investment Officer of Bitwise Asset Management, Matt Hougan, outlined four important factors that have not yet been fully considered by the cryptocurrency market. According to him, these could be the drivers of new growth in this sector in the coming months or years.
This is reported by Finway
Undervalued Growth Drivers: What Could Change the Situation
Currently, most experts and traders are focused on factors such as improvements in the regulatory environment, the proliferation of stablecoins, active participation of institutional investors through ETFs, and the development of the Ethereum ecosystem. However, Hougan believes that even these influences are currently undervalued, while other potentially more significant factors remain unrealized.
- Mass purchases of Bitcoin by governments
- Devaluation of the US dollar
- Reduction in Bitcoin volatility
- Possible start of a new wave of ICOs
Government Reserves, the Dollar, and Volatility: Prospects and Impact on the Market
Bitwise predicts that governments, ETFs, and large corporations are forming the main demand for Bitcoin. Since the beginning of 2025, ETFs and corporations have already purchased over 500,000 BTC. At the same time, active government purchases of crypto assets have not yet occurred, but Hougan believes this process could become a powerful catalyst in 2026.
“Let me clarify: I don’t think we will see a flood of nationwide announcements by the end of the year. However, I suspect there will be more — enough to make this the most significant potential catalyst for 2026. Just the awareness of this could significantly raise prices,” he stated.
Another factor is the monetary policy of the United States. Bitcoin is trading near historical highs despite the Fed’s tight policy. Donald Trump, criticizing the current leadership of the regulator, appointed his candidate, Stephen Miran, to the board, who advocates for a weaker dollar and additional currency issuance. Further interest rate cuts and a weaker dollar, according to Hougan, could further stimulate Bitcoin’s growth.
Also significant is the reduction in Bitcoin volatility following the launch of spot ETFs. The asset’s value has become closer to the market behavior of large corporations’ stocks, such as Nvidia, making it easier for asset managers. Now, whereas investments in Bitcoin were previously limited to 1% of a portfolio, this figure has now risen to 5%.
30-day moving average (30DMA) volatility of Bitcoin. The period after ETF approval is highlighted in green.
ICO 2.0: An Opportunity for a New Influx of Investments
Matt Hougan also draws attention to the potential revival of initial coin offerings (ICOs). After a wave of fraudulent projects in 2018 and the subsequent downturn, many investors lost interest in this instrument. However, SEC Chairman Paul Atkins recently mentioned the possibility of launching a new ICO 2.0 market, which could lead to significant capital entering the industry.
“If this happens [the revival of the ICO practice], I think it could be a significant growth catalyst. Crypto investors have historically been eager to invest in projects — both during the ICO boom and afterward. The launch of a new ICO 2.0 market could attract significant new capital,” the expert believes.
Hougan emphasizes that markets grow not just on positive news, but on news that has not yet been factored into current prices. The factors listed could form the basis for a new powerful rally in the crypto market very soon.