Bitwise: Crypto’s 2026 Rally Depends on Market, Legislation, and Equities
Bitcoin and ether have started 2026 strongly, but sustaining gains will depend on market stability, U.S. regulation, and equity market conditions, according to crypto asset manager Bitwise.
In a Tuesday blog post, Bitwise noted bitcoin (BTC $91,452) and ether (ETH $3,170) are up roughly 7% year-to-date, while speculative tokens like Dogecoin (DOGE $0.146) have surged about 29%, reflecting renewed risk appetite.
Bitwise CIO Matt Hougan outlined three key factors for a sustained rally. First, the market has avoided another major shock like the $19 billion liquidation event on October 10, 2025, easing concerns over forced sell-offs.
Second, U.S. crypto legislation remains critical. Proposed bills are advancing in Congress, with a Senate Banking Committee markup tentatively scheduled for mid-January. Passage would reinforce a supportive regulatory environment, while failure could reverse momentum.
Third, equities must remain stable. A sharp S&P 500 selloff could pressure crypto despite low correlation.
Bitwise remains constructive, citing institutional adoption, stablecoin growth, and regulatory progress as tailwinds for crypto this year.
