The recent executive order signed by U.S. President Donald Trump on cryptocurrency has sparked debates on its impact on Bitcoin's four-year cycle. According to Bitwise CIO Matt Hougan, these changes may extend the bull market beyond 2026.
Bitcoin's Four-Year Pattern According to Bitwise
Historical data suggests Bitcoin follows a four-year cycle, with three years of growth and one year of decline. Major dips have been noted since the start of 2014, 2018, and 2022. Matt Hougan expects 2025 to be another great year for Bitcoin, following the trends of 2023 and 2024.
Trump's Executive Order and Market Implications
On January 25th, President Trump issued an order declaring digital asset expansion as a national priority. The order calls for proper guidelines, potential inclusion of stablecoins into existing markets, and a U.S. Bitcoin reserve. Matt Hougan described this as overwhelmingly bullish for the crypto industry, pointing out that the total integration foreseen by Trump's order will generate trillions.
Institutional Adoption and Market Evolution
Hougan noted unprecedented levels of institutional buying. Early in 2024, spot Bitcoin ETFs were approved, paving the way for traditional financial institutions to invest in cryptocurrency. Hougan believes these developments might reduce future Bitcoin market volatility as institutional investors inject long-term capital into the ecosystem.
Hougan indicated that future corrections might be both shorter and less severe compared to past cycles, believing the crypto space has matured. He expects the current bull market is not over yet, and the crypto train continues moving full steam ahead.
