
Trump’s Crypto Order Could ‘Break Bitcoin’s 4-Year Cycle’ – Bitwise Predicts Trillions in New Capital
In a recent statement, Bitwise Chief Investment Officer Matt Hougan has hinted that the recent crypto executive order issued by President Donald Trump could disrupt the traditional four-year market cycle of Bitcoin. In his statement, Hougan emphasized that this regulatory shift might change how investors approach digital assets.
As per Hougan’s analysis, the current mainstream crypto cycle emerged from the market turmoil in 2022, marked by the collapse of firms like FTX, Three Arrows Capital, and Celsius. The turning point occurred on March 10th, 2023, when Grayscale secured an initial victory in its legal battle against the SEC, paving the way for spot Bitcoin ETFs. The subsequent launch of these ETFs in January 2024 attracted institutional investors, driving Bitcoin’s price from around $22,000 to over $100,000 within a year – signaling crypto’s shift into mainstream.
According to Hougan, Bitwise does not see the timing as the biggest challenge ahead. While regulatory shifts and political developments in Washington could contribute to long-term growth, their full impact may take years to materialize. In fact, he questioned whether another “crypto winter” would align with past market cycles by 2026 if these effects are only felt at that time.
The Bitwise CIO believes the traditional four-year cycle is not entirely behind us as the bull market advances. However, increasing leverage could still lead to corrections in the future. He emphasizes that this time around, downturns will be less severe and shorter in duration compared to previous cycles.
Source: ambcrypto.com