Essential Guide: 3 ‘checkpoints’ Stand Between A Crypto All-time High In 2026: Bitwise

Bitwise’s Matt Hougan says that post-October liquidation stability, the passage of the CLARITY Act and steady equities must happen before crypto hits new highs.

Crypto markets need to pass three so-called checkpoints in order to reach new peaks in 2026, which include the US Senate passing a highly-awaited crypto bill, says Bitwise chief investment officer Matt Hougan.

“Crypto is off to a good start in 2026,” Hougan said in a note on Tuesday, but added there are “three big hurdles standing between us and new all-time highs.”

Markets are currently down 2% over the past 24 hours, but have gained 5.6%, or around $170 billion, since the beginning of the year, pushing total capitalization to a seven-week high of $3.3 trillion on Wednesday.

Hougan said that the Oct. 10 market meltdown, which wiped out $19 billion in futures positions in a single day, caused investors to worry that a major market maker or hedge fund would have to wind down.

“These potential sales hung over the market like a heavy fog,” preventing a rally in late 2025, he said.

Crypto markets shed over $1.2 trillion following the Oct. 10 crash but have shown signs of recovery in January. Source: Coingecko

The US Senate is targeting Jan. 15 for a markup of the CLARITY Act, a process that involves aligning drafts in the Senate Banking and Agriculture committees and pushing the final bill to a vote.

“Passage of the CLARITY Act is key to the long-term future of crypto in the US [and would] enshrine core principles into law and provide a strong foundation for future growth,” Hougan said.

Related: US lawmakers expected to address market structure markup in January

Source: CoinTelegraph