Bitwise CIO: The Crypto Market Must Overcome Three Major Challenges to Continue Rising in 2026

According to The Block, Bitwise CIO Matt Hougan pointed out in the latest client update that although Bitcoin and Ethereum both rose about 7% at the beginning of 2026, the crypto market needs to overcome three key challenges to maintain this momentum.

The first challenge is to avoid a large-scale market crash similar to the one on October 10, 2025, which caused over $20 billion in futures position liquidations. Hougan believes this challenge has been largely addressed; the second challenge is to advance the passage of the Clarity Act crypto legislation in the U.S., which is currently under consideration in Congress and is expected to be marked up in the Senate on January 15; the third challenge is to maintain the stability of the stock market and avoid significant declines that could drag down all risk assets.

Hougan stated that if these three challenges can be successfully overcome, the upward trend of the crypto market at the beginning of 2026 is likely to continue throughout the year.