- Trump’s crypto-executive order can disrupt the traditional four-year market cycle
- Bitcoin’s price could exceed $ 200,000 in 2025, driven by ETFs and institutional adoption
BitWise’s Chief Investment Officer Matt Hougan believes that President Donald Trump’s newest crypto director sequence could increase the long-term four-year-old tree-and-bust cycle that the cryptomarkt has defined for more than ten years.
According to him, this legal shift can challenge the generally accepted market pattern, which may change how investors approach digital assets.
With growing speculation about the influence of Trump on the crypto industry, this step can mark the start of a new market dynamics. It may differ from historical trends and reform expectations for the future of cryptocurrencies.
Hougan wrote on the same and wrote in one remark To customers on January 29. The note said,
“If we followed the classic four -year cycle, 2025 would be a great year for crypto”, “We are on the record and predict that the price of Bitcoin will double this year to more than $ 200,000, powered by streams in ETFs and Bitcoin -Purchasing by companies and governments.
The four -year cycle of bitcoins explained
Historically Bitcoin [BTC] has followed a predictable cycle of four years, with three years of strong profits followed by a significant correction ranging from 58% to 74%. According to Hougan, this pattern has kept where, by 2023 and 2024 that produce impressive returns, which sets expectations for another strong year in 2025.
However, he believes that investors are starting to wonder if 2026 could reset the market.
Although many attributing the cycle to the Halv events of Bitcoin, Hougan claimed that a broader market psychology and speculative behavior play a more important role, formed by important industrial events such as exchange lances, large collapses and regulatory crackdowns.
He added,
“If we followed the classic cycle of four years, 2025 would be a great year for crypto. And I think it will be: we are in the record and predict that the price of Bitcoin will double this year to more than $ 200,000, driven by streams in ETFs and Bitcoin purchases by companies and governments. That can prove to be conservative. “
How did this come about?
According to Hougan, the current regular crypto cycle has emerged from the unrest on the 2022 market, characterized by the collapse of companies such as FTX, Three Arrows Capital and Celsius.
The turning point came on March 10, 2023, when Grayscale won a first victory in his legal fight against the SEC, so that the road was cleared for spot Bitcoin ETFs.
Their launch in January 2024 attracted institutional investors, so that the price of Bitcoin drove from around $ 22,000 to more than $ 100,000 within a year – which meant the shift from crypto to the mainstream.
Worth to point out that Hougan sees the timing as the biggest challenge.
What is waiting for us?
While legal shifts and political developments in Washington prefer prolonged crypto growth, their full impact can take years to realize. In fact, mef These effects are only felt by 2026, Hougan wondered if another “crypto -winter” would join earlier market cycles in 2025.
He said,
“If Blackrock CEO Larry Fink calls for $ 700k bitcoin, will we really see a 70% pullback?”
While the cryptomarkt is evolving, the CIO of Bitwise believes that the traditional four -year cycle is not completely behind us. As the Bullmarkt progresses, increasing leverage can still lead to corrections.
With the growing maturity of industry, however, he expects that this decline will be less serious and shorter in duration compared to earlier cycles.
Although the volatility remains a factor, the resilience of the crypto space can help kiss the future pullbacks, what a shift marks in how market cycles play.
In conclusion, he stated it best when he said,
“What is the completely steam forward now. The crypto train leaves the station. ‘
