TL;DR
- Bitwise CEO Hunter Horsley says the crypto market structure has matured, signaling that the traditional four-year cycle is losing relevance.
- Persistent institutional flows and growing bank participation are creating solid and sustained demand.
- Additionally, the recent 0.25% Fed rate cut reinforces expectations for accelerated institutional capital moving into crypto in 2026.
Bitwise projects strong momentum for 2026 as institutional capital flows and expanding bank access are transforming crypto market demand. CEO Hunter Horsley emphasizes that the market is still underestimating this bullish potential. Analysts note that broader adoption by institutional investors could reshape liquidity dynamics across multiple digital assets.
Institutional Flows Are Reshaping Crypto Cycles
Horsley stated that persistent institutional flows and adoption by major banks are changing historical boom-and-bust patterns in crypto. According to the CEO, the four-year cycle is no longer dominant:
“The market has changed. It has matured. Looking back, 2025 will appear as a bearish year since February, though masked by bids from DATs and Bitcoin Treasury Companies.”
He highlighted that capital inflows from corporate treasuries and diversified asset managers are strengthening liquidity and establishing a firmer foundation for future uptrends. These structural flows are creating a more stable market environment and encouraging longer-term positions across Bitcoin, Ethereum, and select altcoins. This matured market structure reduces historical volatility and increases overall stability.
Mainstream Adoption And Bank Expansion Drive Demand
Bitwise has received ETP approvals from five banks with $300 billion to $2 trillion in assets for their wealth management clients over the past six months. Horsley noted that these approvals broaden distribution channels and speed up potential investment inflows. The combination of increased bank access and clearer regulations is attracting institutional capital that was previously outside the crypto market.
Horsley also emphasized that the recent 0.25% Fed rate cut enhances the appeal of digital assets compared with traditional fixed-income instruments, reinforcing expectations for continuous inflows in 2026. Even a small allocation from global funds that have not yet invested in crypto could generate significant and persistent capital movement, he said. Growing interest from family offices and regional banks indicates that adoption may accelerate beyond initial expectations.
With a stronger market structure and growing institutional participation, Bitwise forecasts that 2026 will be a pivotal year for crypto. Horsley believes that the combination of rising institutional capital, bank expansion, and regulatory clarity could replace traditional cycles with sustained growth, leaving many investors underestimating the market’s real potential.
