Bitcoin's traditional four-year cycle may be a thing of the past. Bitwise CIO Matt Hougan suggests that institutional adoption and regulatory shifts could extend the current bull market.
The End of Bitcoin’s Traditional Cycle?
Bitcoin has historically followed a predictable growth and correction pattern. Hougan believes this cycle may no longer hold due to economic and regulatory influences. In past cycles, major catalysts sparked investor enthusiasm, followed by corrections driven by external pressures.
New Catalysts Driving Bitcoin’s Growth
Hougan highlights recent events that have changed BTC's trajectory. Key among them was Grayscale's SEC legal victory, paving the way for Bitcoin ETFs that drew substantial institutional funds, boosting BTC's value significantly. Additionally, new executive orders have prioritized digital assets.
A More Mature Market, Less Severe Corrections
According to Hougan, institutional investors play a growing role in mitigating severe corrections seen in past cycles. The current market sees increased corporate Bitcoin purchases, lending it stability.
Greater institutional participation and clearer regulations make the Bitcoin market more stable, potentially reducing the likelihood of dramatic corrections in the future.