Bitwise: Trump’s Crypto Executive Order Could Disrupt Bitcoin’s Cycle
The recent executive order from US President Donald Trump has the potential to disrupt the four-year cyclical pattern that the crypto market has experienced over the past decade, according to Matt Hougan, the investment chief at Bitwise.
In his note on January 29th, Hougan stated that the changes brought about by the order, as well as those at the Securities and Exchange Commission, signify the mainstreaming of crypto. This means that big banks and Wall Street will have the opportunity to become heavily involved in the industry.
Hougan also emphasized that the market for crypto exchange-traded funds is now large enough to attract billions of dollars from new investors.
He believes that Trump’s order, which aims to create a digital asset stockpile and implement a regulatory framework, will bring in trillions of dollars. The cryptocurrency, Bitcoin, has historically followed a four-year cycle over its 16-year lifespan. This means that it experiences losses in 2014, 2018, and 2022, but reaches new highs in the three years between each decline.
