Bitcoin bull run may be slower: Bitwise CIO cites stablecoins & tokenization shift
Bitwise CIO Matt Hougan says the next Bitcoin bull run is likely to be slower and less volatile as Wall Street shifts from “pure” digital assets toward real-world use cases like tokenization and AI. Hougan remains bullish and reiterates his $1 million Bitcoin forecast within 10 years, though he has less certainty on when a market bottom occurs.
Despite Bitcoin down about 26% this year and still ~50% below its October record high, interest from registered investment advisors and institutional-focused firms remains “as high as ever.” Hougan argues the decline is partly helped by traditional investors rotating attention, but in bear markets people more easily move toward tangible assets—specifically stablecoins and tokenization.
Stablecoins are gaining traction: total stablecoin market value recently hit a record $322B, and Citi projects it could reach $4T by 2030. The article also notes tokenization-related chains have been hit, while Stellar’s XLM stands out with an ~8.9% gain year-to-date.
Bullish
Hougan’s core message is bullish for Bitcoin, but the path is likely less explosive. By framing the next Bitcoin bull run as slower and lower-volatility, the article implies a regime shift: capital is still interested, yet it is rotating into “real-world” rails such as stablecoins and tokenization rather than chasing spot volatility.
Short term, this can temper upside momentum in BTC because flows may concentrate in stablecoin liquidity and tokenization ecosystems (and not immediately lift BTC price). In the piece, tokenization-linked projects are described as hit—suggesting cross-asset dispersion rather than a uniform BTC-led rally.
Long term, the stablecoin growth signal (record $322B, Citi’s projection to $4T by 2030) supports a structural tailwind: more on-chain settlement and funding channels can broaden participation and market depth, which historically precedes stronger risk appetite. Similar past cycles show that when institutional advisory demand persists during drawdowns, BTC often recovers after periods of consolidation—though timing depends on the four-year cycle dynamics Hougan notes.