Bitcoin may have reached the bottom of its current market slump and could surge before the end of the year, according to Bitwise.
This assessment comes as institutional investors weigh the risks of digital assets against emerging regulatory frameworks that could stabilize the market.
Matt Hougan, Chief Investment Officer of Bitwise Asset Management, discussed the market's trajectory in interviews with Bloomberg and CNBC last month. He said Bitcoin is at a turning point and may have finally hit a bottom [1, 2].
Hougan cited several factors contributing to a potential rebound. He said the end of Bitcoin's traditional four-year cycle and the potential passage of the CLARITY Act could accelerate a market rally [1, 3].
Security concerns are also influencing the shift. Hougan said the recent Coldcard wallet hack has eroded confidence in self-custody, potentially pushing more users toward managed institutional services [1].
This shift coincides with a period of extreme volatility. Analysts said that the second quarter of 2026 was the worst quarter for cryptocurrency in years [5].
Despite the recent slump, Hougan highlighted the scale of available investment. He said global capital pools total up to $200 trillion [4]. He said that a 1% shift of that global capital into cryptocurrency could unlock massive long-term growth [4].
While some reports suggest Bitcoin has already bottomed, others describe the current moment as a turning point for the asset [2, 3].
“Bitcoin may have reached the bottom of its current market slump”
The transition from individual self-custody to institutional management, spurred by security breaches and regulatory clarity, represents a fundamental shift in how Bitcoin is held. If the CLARITY Act provides a legal roadmap for U.S. institutions, the movement of even a small fraction of global capital into the asset class would likely create a price floor significantly higher than previous cycles.
