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The cryptocurrency market likely bottomed out in the fourth quarter. Bitwise suggested.
Head of Bitwise Investments Matt Hougan In a quarterly market report released Jan. 21, the fourth quarter showed the type of divergence typically seen at the bottom of a bear market: Sentiment was down, but fundamentals were up.
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Hougan cited Ethereum’s 29% drop in the quarter while network activity jumped 24.5%. Similarly, he said cryptocurrency stocks fell 20% despite projections that the sector would grow three times faster than any other sector.
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Hougan said this type of divergence was last seen in the first quarter of 2023, as the market began to rebound from the FTX collapse. What followed was a recovery lasting more than two years, he said. During this period, Bitcoin rose from an opening price of around $16,000 in the first quarter of 2023 to a peak of over $126,000 last October.
Current catalysts for a similar run include progress on cryptocurrency market structure legislation, a potential stablecoin supercycle, the appointment of a dovish Federal Reserve chair and flows of exchange-traded funds from wire companies, Hougan said.
The Senate Banking Committee recently postponed a plan to revise legislation on the structure of the cryptocurrency market following opposition from cryptocurrency industry players. However, the Senate Agriculture Committee’s markup is scheduled for Tuesday.
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Bitwise said stablecoins are decoupling from the broader cryptocurrency market and playing an increasingly important role in cross-border transactions and payments. The company cited 2025 volumes exceeding $32 trillion. He said stablecoins would surpass that volume this year, driven by the adoption of fintech.
Fundrise is not a newcomer to the private markets. The company has been around for over a decade and manages billions of dollars on behalf of hundreds of thousands of clients. Their venture capital offering was specifically designed for individual investors, with low minimums, diversification and a long-term focus on private technology companies that often stay private for years before going public. They are looking for investors with a minimum investment of $10.
Bitwise’s recent report aligns with its December prediction that Bitcoin and other major cryptocurrencies, such as Ethereum and Solana, would hit new price records this year.
Despite Bitwise’s positive outlook, the cryptocurrency market has had a mixed start to the year. After an initial recovery, the markets are once again showing signs of weakness in a context of macroeconomic uncertainty.
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This article Crypto Market Likely Bottomed in Q4 2025. Here’s Why, According to Bitwise originally appeared on Benzinga.com
