
Trump’s Crypto Order Could ‘Break Bitcoin’s 4-Year Cycle’ – Bitwise Predicts Trillions in New Capital
Is the infamous four-year cycle of Bitcoin set to come to an end? According to Matt Hougan, Chief Investment Officer at Bitwise, President Donald Trump’s recent crypto executive order has the potential to disrupt this long-standing pattern and bring trillions of dollars in new capital to the market.
The idea that the Bitcoin price could surpass $200,000 in 2025 is not a far-fetched notion anymore. In fact, Hougan firmly believes that the launch of spot Bitcoin ETFs in January 2024 attracted institutional investors, fueling an unprecedented rise in the cryptocurrency’s value, catapulting it from around $22,000 to over $100,000 within a year.
The mainstreaming of cryptocurrencies has reached a point where regulatory shifts and political developments in Washington could have long-term growth potential for crypto assets. However, Hougan warns that the timing of these effects may take years to materialize.
One crucial aspect is the fact that we are moving away from the traditional four-year cycle. The collapse of firms like FTX, Three Arrows Capital, and Celsius in 2022 marked a turning point in market turmoil, ultimately paving the way for mainstream crypto adoption.
The current climate appears to be shifting towards a new era where Bitcoin’s price will no longer be defined by this repetitive cycle. Instead, it may see more gradual growth, tempered by increased regulatory scrutiny and growing institutional involvement.
It remains to be seen whether the industry can continue to move in a direction that is less prone to severe corrections. However, as Hougan suggests, these downturns could potentially become less severe and shorter-lived compared to previous cycles.
The Bitcoin market has reached an inflection point where institutional investors are increasingly looking at cryptocurrencies as a viable asset class. While volatility will inevitably remain a factor, the resilience of the crypto space may help cushion future pullbacks, signaling a departure from traditional four-year cycles.
It’s full steam ahead for the crypto train, and Bitwise is optimistic about the potential growth trajectory ahead, fueled by Trump’s recent executive order.
Source: ambcrypto.com