Bitwise CIO Matt Hougan: 'Dominoes Falling' Towards Global Crypto Investment Normalization

Matt Hougan, Chief Investment Officer at Bitwise Asset Management, declared that "The dominoes are falling. Soon, crypto will be fully normalized as an investment globally," signaling a pivotal shift in the digital asset landscape. His statement, made on October 20, 2025, underscores a growing sentiment among industry leaders regarding cryptocurrency's irreversible integration into mainstream finance. This outlook comes amidst significant regulatory developments and surging institutional interest throughout the year.

Hougan has consistently articulated that the crypto industry is entering a "golden age," moving beyond its traditional four-year market cycles. He attributes this sustained rally to unprecedented institutional adoption and a clearer regulatory environment, which he believes will overwhelm historical cyclical patterns. This perspective suggests a more mature and stable market for digital assets.

A major catalyst for this normalization was the passing of the GENIUS Act in May 2025, which established a comprehensive regulatory framework for stablecoins. Hougan likened the legislation's importance to "Wall Street and crypto getting married," predicting it could transform the stablecoin market into a $2.5 trillion sector. This regulatory clarity is seen as crucial for bridging traditional finance with blockchain technology, paving the way for broader institutional engagement.

The year 2025 has also witnessed significant institutional inflows into Bitcoin exchange-traded funds (ETFs), with reports indicating billions in net inflows. Furthermore, over 70 public companies have added Bitcoin to their balance sheets, reflecting increasing corporate acceptance. Hougan has maintained a bullish stance, forecasting Bitcoin could reach $200,000 by the end of 2025, driven by these substantial institutional and corporate investments.

Despite a recent market "blip" in October 2025, which saw a quick recovery, Hougan emphasized the market's resilience and strong fundamentals. Macroeconomic factors, including Federal Reserve interest rate cuts in September 2025 and a pro-crypto political climate under the current administration, are also contributing to a favorable environment. These elements are collectively bolstering confidence in digital assets.

Beyond Bitcoin, institutional interest is diversifying into altcoins like Ethereum and Solana, fueled by advancements in tokenization and new stablecoin use cases. Hougan predicts 2025 will be "the year of crypto diversification" for institutional investors, as digital assets become a permanent fixture in sophisticated portfolios. This expanding scope of investment highlights the deepening integration of crypto across various financial sectors.