Bitwise CIO: Next crypto bull run hits the snooze button as Wall Street swipes right on AI 🌙

The next cryptocurrency bull market is likely to be slower and less volatile than previous cycles as Wall Street investors shift their attention to real-world applications such as tokenization and artificial intelligence, according to Matt Hougan, chief investment officer of asset manager Bitwise. "We've lost the attention of investors to other hot trends," Hougan said in an interview over email, citing AI as the most prominent example. "I think the coming bull market will be slower and less volatile [than] in the past."

Despite bitcoin's price weakness, interest from registered investment advisors (RIAs) and institutional-focused firms remains elevated. "Interest is as high as it's ever been," Hougan said, reiterating his long-standing forecast that bitcoin will trade above $1 million within the next decade. "I have less certainty around how, when or if it has bottomed. I think we have to wait to see how the four-year cycle plays out."

Bitcoin (BTC $63,895.75) is down 26% year-to-date and remains roughly 50% below its all-time high set in October, according to CoinDesk data. The broader CoinDesk 20 Index (CD20) has fallen 34% over the same period. Among tokenization-focused networks, Stellar's lumen (XLM) is up 8.9% on the year even as other related blockchains have declined.

Hougan noted that stablecoins and tokenization have become easier entry points for investors seeking tangible use cases during the current downturn. The combined market capitalization of stablecoins recently reached a record high of $322 billion, exceeding the foreign-exchange reserves of several major economies. Hougan, a long-time bitcoin bull, said these developments point to sustained institutional engagement even as broader market sentiment remains cautious, with multiple and often conflicting signals on where bitcoin's price slide might ultimately bottom.