Unlocking Crypto’s Potential: 3 Crucial Checkpoints for All-Time Highs in 2026

The crypto market is getting off to a good start in 2026, with total capitalisation peaking at $3.3 trillion, the highest in seven weeks. However, Bitwise’s chief investment officer, Matt Hougan, trashes the idea of the market reaching new all-time highs any time soon without first meeting three key checkpoint requirements.

Checkpoint 1:Post, October Liquidation Stability

The market is still on a healing path after its meltdown on October 10, which saw $19 billion in futures positions being erased.

Source: Toptal

Hougan is convinced that investors have emotionally stabilized from this incident and the market is already looking ahead. How the market reacts after a liquidation can tell a lot about its potential growth.

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Checkpoint 2:Passage of the CLARITY Act

The US Senate is planning to have a markup session on the CLARITY Act on January 15. The Act aims at providing a solid groundwork for the future growth of the US market. Hougan points out that the passing of this Act is very important for the crypto industry’s long, term prospects in the US as it would legally establish the main principles.

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Checkpoint 3: Steady Equities Market

Also, the broader equity market’s performance is a major factor, since a sharp collapse there could spill over to crypto markets. According to Hougan, though crypto has a low correlation with stocks, a stable equities market is a prerequisite for crypto to grow.

To sum up, the entire market is currently facing a number of challenges before it can hit new all-time highs. But if a proper regulatory framework is set up and the market remains stable, 2026 may well be the breakthrough year for crypto.

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