Bitwise Cio Matt Hougan says that Washington’s new embrace of digital assets can open its doors for trillion dollars institutional money to enter the industry.
In a thread on the social media platform X, Hougan says that with the executive command of President Trump focused on crypto – called “strengthening the American leadership in digital financial technology” – regular institutions can now dive in the industry “in a huge way” .
Hougan says that institutional capital can start with a multi -year migration to digital assets, so that the traditional four -year market cycle can be broken in crypto that Bitcoin’s (BTC) has followed in half, an event that cuts miners in two.
“The change in DC will be felt over the years, not months. In the absolute best scenario it will take a year to adjust a new regulation framework for crypto, and a similar period for large companies to get from planning to action.
Wall Street and regular settings are like gigantic tankers, no speedboats. If institutions really start to orientate on crypto next year, do we really have a new ‘crypto -winter’ in 2026?
I’m not sure; The scale is so large. The ETFs (listed funds) brought hundreds of billions of new investor capital in Crypto. The change in DC will bring trillions. “
Instead of a long and deep bear market, Hougan says that potential withdrawals will be “considerably shorter and shallower than in recent years”.
“What does it mean? It does not mean that the four -year cycle will completely leave. The leverage will build up. Excess will appear. Bad actors will arise. And at some point that could be washed away, which will bring volatility to the market …
We are in a new mainstream era from Crypto. It will be interesting. “
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Generated image: midjourney
