- Bitwise CEO Hunter Horsley said the four-year crypto cycle is dead after last year’s down market.
- Horsley said the new crypto phase will be shaped by mainstream institutions and wider adoption.
- Stablecoin supply has climbed above $300 billion, according to the DeFiLlama chart.
Bitwise CEO Hunter Horsley said the four-year crypto market cycle is over as institutional participation reshapes the digital asset sector. Speaking at Consensus 2026 in Miami, he said the old pattern of three rising years followed by one down year no longer fits the current market.
His comments came as stablecoin supply moved above $300 billion, according to DeFiLlama data updated on May 7. Meanwhile, Horsley pointed to Wall Street participation, bitcoin-backed income products, and broader adoption as signs of a different market structure.
Horsley Says Old Cycle Has Ended
Horsley said, “The four-year cycle is dead,” while discussing the market’s shift at Consensus 2026. He argued that last year’s downturn broke the former three-up-one-down pattern that many crypto investors used to track major cycles.
The Bitwise executive described the current phase with a Winston Churchill line, saying, “This is not the end, it’s not the beginning of the end, but it is the end of the beginning.” His point centered on a market moving away from early crypto patterns.
Notably, Horsley said older instincts may not apply in the new phase. He pointed to larger financial institutions entering crypto conversations and said Morgan Stanley now carries more weight in the market than many crypto-native names.
Stablecoins also formed part of his argument. DeFiLlama data showed total stablecoin supply above $300 billion in May 2026, with USDT and USDC holding the largest share across the tracked market.
Stablecoins and Institutions Gain Weight
Horsley said stablecoins now attract attention similar to altcoins. The DeFiLlama chart showed stablecoin supply rising from around $230 billion in May 2025 to above $300 billion by May 2026.
USDT remained the largest stablecoin by supply, while USDC held the second-largest share. Smaller segments included USDS, DAI, USD1, and other stablecoins, showing a wider market base across issuers.
Meanwhile, Bitwise has grown to $15 billion in assets across more than 30 products. Horsley said most of that expansion came after 2021, when the firm managed less than $1 billion.
He also said BlackRock’s crypto entry helped the wider market. According to Horsley, BlackRock reduced hesitation among institutional allocators and made crypto easier for other firms to discuss with clients.
Bitcoin Income Products Draw Focus
Horsley also discussed Strategy’s Stretch preferred instrument, which uses a stable net asset value, bitcoin collateral, and yields above 10%. He said, “I think this thing is a juggernaut,” and added that it remains in early innings.
According to Horsley, the structure could spread across the industry within 12 months. He said bitcoin collateral could help move BTC into fixed-income markets, expanding its role beyond spot exposure.
However, the strategy’s structure attracts close market attention. It was previously reported that STRC posted a record trading day last month and became a major capital engine for Strategy’s bitcoin acquisition plan.
Horsley also said bitcoin’s payments narrative may return. He argued that the past decade focused on proving bitcoin had value, while wider ownership now creates conditions for payment use to re-enter market discussion.
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