Hunter Horsley Predicts Explosive Growth for Crypto Credit by 2026

Hunter Horsley, CEO of Bitwise Asset Management, shared an intriguing insight on social media. He suggested that crypto credit markets are on the verge of rapid growth.

According to Horsley, the ability to borrow against crypto assets and tokenized equities will unlock significant market efficiencies. As digital assets grow in size, he believes credit will become a pivotal development in the crypto sector.

Horsley’s comments set the stage for a possible shift in the cryptocurrency market. “In 6-12 months, the big story in crypto is going to be credit and borrowing,” Horsley said. He sees this as a major evolution in digital finance. Crypto credit markets, in his view, are set to explode in the next few years.

Crypto Credit Markets Set for Growth

Horsley pointed to the expanding size of digital assets as a major driver for the rise of credit markets in the space. With nearly $4 trillion in crypto value today, Horsley believes borrowing against these assets will soon become commonplace. “When people can borrow against their crypto rather than sell it, they will,” he stated.

He also highlighted the growing potential of equity markets. As traditional assets tokenize, crypto credit markets will open new borrowing opportunities. For example, someone with $7,000 worth of tokenized stock could soon borrow against it on-chain.

The integration of these markets could fundamentally reshape global capital markets. Crypto’s ability to provide liquidity without liquidation is an enticing proposition. By using their digital assets as collateral, users could unlock capital for new investments while maintaining exposure to their original positions.

Also Read: Apollo Crypto Report Highlights Bitcoin and DeFi Growth Amid Fed Rate Cuts and China’s Credit Expansion

Market Stress and Institutional Profit-Taking

However, while crypto credit markets are set to grow, the broader market faced difficulties in late September 2025. Bitcoin’s price dropped to $111,760 on September 22, which was a 1.5% decline. This decrease happened after the cryptocurrency struggled to hold above the important $115,000 level. 

The overall cryptocurrency market also endured major losses. Bitcoin’s selloff caused a larger market correction, with $77 billion lost from the total market value in just one day. More than 400,000 traders were liquidated, leading to $1.7 billion in liquidations. 

Several factors led to this downturn. The rising U.S. dollar made investors more cautious. Additionally, institutional investors took profits after the market had strong gains earlier in the year.

Crypto Credit Markets Could Transform Capital Markets

Despite these short-term challenges, analysts are hopeful about the long-term potential of crypto credit markets. On-chain data shows that exchange-traded funds (ETFs) are absorbing more bitcoin than miners can produce. This creates a supply squeeze, pushing the market toward a potential recovery. 

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Historically, Bitcoin has seen significant rallies after September, with 70% of the years since 2015 ending on a high note. Many traders believe this pattern could happen again, especially as the credit market builds momentum. 

The shift toward crypto credit markets offers exciting opportunities. Borrowing against digital assets could change liquidity across industries. As crypto continues to grow, the role of decentralized finance in traditional markets will likely increase.

Summary

Hunter Horsley, CEO of Bitwise Asset Management, predicts that crypto credit markets will see rapid growth in the next 6 to 12 months. The increasing size of digital assets and the tokenization of equities are expected to fuel this change. Although there is short-term stress in the market, analysts are still positive about the future of these markets. Historical trends suggest a potential rally after September.

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FAQs

What are crypto credit markets?

Crypto credit markets are platforms where digital assets like cryptocurrencies and tokenized equities can be utilized as collateral for loans. The markets enable users to borrow without necessarily selling their assets.

How will borrowing against crypto assets affect the market?

Lending against crypto assets will enable users to keep holdings and free up capital for additional investments. This can bring liquidity into the market.

What is the growth potential of crypto credit markets?

Crypto credit markets ought to grow quickly, driven by the growing size of digital assets and the tokenization of conventional equity markets. This growth can change the global capital markets.

What is the role of ETFs in the crypto market?

ETFs play the important role of absorbing more bitcoin than the miners can produce, and this works to create a supply squeeze. This can lead to upward pressure on prices in the long term.

Do crypto credit markets carry risks?

While there is great potential, among the dangers are market volatility and over-leveraging. Yet advocates believe that these dangers can be addressed through careful market design and regulation.

Glossary of Key Terms

Crypto Credit Markets: Platforms on which cryptocurrency is used as collateral to access funds. These markets offer investors a way to free up capital without selling their assets.

Tokenized Equities: Classical shares digitized and standing for ownership on a blockchain.

Supply Squeeze: A situation where demand for a commodity exceeds its supply, putting upward pressure on prices.

ETFs: Stock exchange-listed mutual funds that are inclined to follow single assets like Bitcoin.

Doji Candle: A cryptocurrency and stock technical formation that is used to signal market indecision or possible reversal.