Crypto markets are on the brink of a massive transformation, with trillions in potential inflows following President Donald Trump’s executive order. This move could redefine Bitcoin’s traditional four-year cycle as institutional adoption accelerates.
Mainstream Surge in Crypto Could Reshape Market Cycles
Matt Hougan, Chief Investment Officer at Bitwise Asset Management, recently analyzed the potential impact of Trump’s executive order on Bitcoin’s long-established market cycle. In his January 28 report, he highlighted how the order prioritizes digital assets at a national level, sets the stage for clear regulatory guidelines, and even proposes a “national crypto stockpile.”
Hougan emphasized that alongside the Securities and Exchange Commission’s (SEC) newfound pro-crypto stance, these developments create a direct path for Wall Street giants to enter the space in full force. While Bitcoin ETFs have already introduced new investors to the market, he suggested that this executive action could supercharge adoption.
“But the full mainstreaming of crypto—the one contemplated by Trump’s executive order… I’m convinced will bring trillions,”
he stated, underlining the potential scale of institutional involvement.
Bitcoin’s Growth Trajectory and the Four-Year Cycle Debate
Hougan reviewed Bitcoin’s historical performance, noting its well-documented pattern of three strong bullish years followed by a correction. He explained that the latest cycle emerged from the crypto industry’s 2022 turmoil, which saw the collapse of major firms like FTX, Three Arrows Capital, and Celsius. At Bitwise, this cycle is referred to as the “Mainstream Cycle,” defined by growing institutional interest in crypto.
With Bitcoin already trading above $100,000, Hougan remains optimistic about its future. “If we were following the classic four-year cycle, 2025 would be a great year for crypto. And I think it will be… We’re on the record predicting that Bitcoin’s price will double this year to above $200,000,” he projected.
Despite his bullish outlook, Hougan acknowledged the risks of excessive speculation. “Leverage will build up as the bull market grows. Excess will appear. Bad actors will emerge,” he cautioned. However, he believes any downturn will be milder and shorter than previous cycles, as mainstream investors now play a central role in crypto’s evolution.
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