As volatility continues in cryptocurrency markets, Matt Hougan, chief investment officer at Bitwise Asset Management, outlined key dynamics that could pave the way for Bitcoin and altcoins to emerge from the bear market.
According to Hougan, although it is still early days, some structural developments that could signal a bottom forming in the market are starting to emerge.
Hougan said: “It’s still early, but if you look closely, you might start to see developments that could pull us out of the bear market. »
According to Hougan, the first important topic in the crypto ecosystem is “agent finance,” or autonomous/agent-based financial applications. The steps taken by large companies like Coinbase are particularly noteworthy in this area. Systems in which AI-based financial agents can transact on behalf of users could usher in a new era in efficiency and scalability.
The adoption of decentralized finance (DeFi) by institutional parties is another element highlighted by Hougan. BlackRock, one of the world’s largest asset managers, and its collaboration with DeFi platform Uniswap is seen as an important indicator in bridging the gap between traditional finance and blockchain-based finance.
The growth of institutional DeFi can restore confidence in markets by increasing capital inflows.
Hougan also noted that technical advances made to address potential security risks posed by quantum computers in the future are potentially significant. Developments in quantum resistance cryptography are emerging as a confidence builder for long-term investors.
The process of tokenizing real-world assets (RWA) on the blockchain is also gaining momentum. Integrating many assets, from bonds to real estate, on the blockchain increases both liquidity and transparency. This trend is seen as a structural transformation supporting crypto’s evolution from a speculative asset class to an infrastructure technology.
*This does not constitute investment advice.
