Crypto investors beware: Bitwise CIO Matt Hougan warns of the "wealth effect" in the crypto market, as traders reallocate portions of their Bitcoin profits into riskier investments, causing price increases across the board. With Bitcoin hitting new all-time highs, investors are spreading their profits into more questionable crypto tokens, potentially giving them a false sense of legitimacy. Hougan advises caution, as many terrible projects get funded in exuberant bull markets and are already trading at crazy valuations. As scams in the crypto industry continue to evolve, investors should remain vigilant and approach high-valued projects with skepticism.