Bitwise Highlights Key Challenges for Crypto in 2026

Matt Hougan, Bitwise’s Chief Investment Officer, highlights key hurdles for cryptocurrency’s growth in 2026, including U.S. legislation advancements and stock market correlations.

These challenges impact regulatory clarity for crypto assets, market stability, and investor confidence, influencing broader acceptance and innovation within the digital currency sector.

Three Major Challenges Facing Crypto Growth by 2026

Bitwise Asset Management’s Chief Investment Officer, Matt Hougan, underlined three potential hurdles that could impact cryptocurrency growth in 2026. The first is the threat of large-scale liquidation events, which the market appears to have stabilized against as no major events have occurred by the end of 2025. The second challenge is the progression of the “Cryptocurrency Market Structure Act” through Congress, aimed at establishing a solid regulatory foundation. The Senate is expected to debate it soon, though issues around decentralized finance and stablecoins remain contentious. Lastly, the stock market’s performance poses risks. Hougan noted that a stock market crash could affect risk assets like cryptocurrencies. Experts, however, perceive the likelihood of a U.S. stock market rise as high, though uncertainties persist.

Matt Hougan, Chief Investment Officer, Bitwise Asset Management, identified three obstacles for cryptocurrency’s sustained rise in 2026: “avoiding large-scale liquidation events…U.S. legislation on market structure, and stock market correlation risks.”

Market participants and industrial experts have reacted to these assertions. Key legislative figures, including Tim Scott and Cynthia Lummis, are engaging with the bill’s advancement, seeing it as laying the necessary groundwork for future growth. Market stakeholders remain attentive to changes in crypto regulation and its alignment with financial markets.

Bitcoin Price and Legislative Milestones Analyzed for 2026

Did you know? In 2024, the House passed the CLARITY Act aiming to clearly define federal oversight, regarded as a preliminary step towards the “Cryptocurrency Market Structure Act.”

On January 7th, 2026, Bitcoin (BTC) was priced at $92,062.90, according to CoinMarketCap. It holds a market cap of $1.84 trillion, capturing 58.19% of total market dominance. Bitcoin’s price decreased by 1.90% over the past 24 hours, with a trading volume of $56.06 billion, equating to a 23.36% change. Recent moves include a 3.58% uptick in the past week, but a notable 25.17% drop over the last 90 days.

According to Coincu research analysts, achieving major legislative milestones like passing the “Cryptocurrency Market Structure Act” could help the U.S. become a central hub for blockchain innovation. This would create an inviting environment for institutional investors, potentially driving the next wave of technological advancement and financial protocols within the crypto space.