Crypto Set to Soar as Trump’s Order Opens the Floodgates for Institutional Investment

Crypto markets are on the verge of a major transformation, with trillions in institutional capital expected to flood the space following a groundbreaking executive order from former U.S. President Donald Trump. This shift could disrupt Bitcoin’s traditional four-year cycle, ushering in a new era of sustained growth and mainstream adoption.

Matt Hougan, Chief Investment Officer at Bitwise Asset Management, shared his insights on the implications of Trump’s order in a recent analysis. “Last week, President Trump issued an executive order that was so overwhelmingly bullish for the space that it’s making me wonder,” he wrote. The order designates digital assets as a “national priority,” outlines a clear regulatory framework, and even proposes the creation of a national crypto stockpile.

Hougan emphasized that this move, combined with the increasing pro-crypto stance of the SEC, sets the stage for major Wall Street banks and institutional investors to enter the market aggressively. He highlighted the role of Bitcoin ETFs in expanding adoption, noting that while they have already brought in billions, this new level of mainstream integration could unlock trillions.

Crypto’s Evolution: Breaking Free from the Four-Year Cycle?

Bitcoin’s price movements have historically followed a four-year pattern—three years of significant gains followed by a market correction. However, Hougan believes this new wave of institutional adoption could alter the cycle. He referred to the current phase as the “Mainstream Cycle,” shaped by traditional investors entering the crypto space in droves.

Reflecting on past events, he pointed out that the market’s last major downturn stemmed from widespread deleveraging following the collapse of major firms like FTX, Three Arrows Capital, Genesis, BlockFi, and Celsius. Now, with Bitcoin surpassing $100,000, he sees even greater upside potential. “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 stated.

While bullish, Hougan remains aware of market risks, anticipating that leverage and excess will build as the bull run progresses. However, he expects any future corrections to be milder and shorter-lived than in previous cycles. “My guess is that any pullback will be shorter and shallower than in years past,” he said.

With institutional investment pouring in and regulatory clarity improving, Hougan sees nothing but upward momentum ahead. “As for now, it’s full steam ahead. The crypto train is leaving the station,” he concluded.

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