According to Bitwise Chief Investment Officer Matt Hougan, the rise in gold prices above $5,000 per ounce and increasing uncertainty over US crypto legislation represent a critical moment for digital asset markets.
The combination of increasing demand for assets outside government control and waning confidence in near-term regulatory clarity could impact both crypto adoption and price action in the coming months.
Gold’s Rise Reflects Growing Distrust of Fiat Currencies
Gold has surged, gaining 65% in 2025 and another 16% so far in 2026, marking the first time it has traded above $5,000 an ounce. This surge reflects growing concerns about fiat currencies and the long-term effects of expansionary monetary policy, rising debt, and currency devaluation.
Hougan argued that the move reflected a deeper shift in investor behavior, with people seeking to manage their assets themselves, rather than relying on the favor of others. This shift is driven by a loss of trust in institutions, accelerated by geopolitical events such as the US freezing Russian government bonds in 2022.
Core Features of Cryptocurrencies Become More Relevant
As trust in traditional systems weakens, the core features of cryptocurrencies, such as self-custody and censorship resistance, become more important. Assets like Bitcoin allow ownership without reliance on centralized intermediaries, while networks like Ethereum and Solana operate under rules that no single authority can change.
With this in mind, Hougan said that the probability of the US Crypto Clarity Act passing has dropped to around 50%, due to recent setbacks, including criticism from Coinbase CEO Brian Armstrong. If the bill fails, Hougan warned that crypto could enter a multiyear “show me” phase, where prices and adoption depend more on concrete, real-world usage than on expectations.
Impact of Regulatory Uncertainty on Crypto Markets
In contrast, the passage of the Clarity Act could trigger a strong rally, as investors price in clearer growth paths for stablecoins and tokenized assets. Hougan remains optimistic that the law will pass, but warned that without it, the market should prepare for a slower, evidence-based period of growth.
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