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Will Trump’s Crypto Decree Disrupt Bitcoin’s 4-Year Cycle?

Trump's game-changing crypto executive order sparks debate: Will the flood of Wall Street money forever change Bitcoin's boom-bust rhythm? One expert believes...

A New Era for Bitcoin?

Donald Trump’s landmark executive order on January 23, 2025, aimed at fully integrating cryptocurrencies into the U.S. financial system, could fundamentally alter Bitcoin’s historic four-year market cycle, according to Matt Hougan, Chief Investment Officer at Bitwise. This cycle, driven by the halving event every four years, typically sees a significant rise followed by a sharp decline. However, with the massive influx of traditional financial institutions, this pattern may evolve.

Banks and Wall Street can now aggressively enter the sector.

– Matt Hougan, Bitwise CIO

Hougan asserts that while Bitcoin ETFs have already attracted billions, the policy shift in Washington could bring in trillions. This massive capital inflow could ultimately reduce the market’s usual volatility.

Smoothing Out the Cycles

Though the four-year cycle may not vanish entirely, Hougan predicts that corrections will be “shorter and shallower.” As the market matures with a broader diversity of investors, prices could stabilize.

  • Bitcoin ETFs have already drawn billions
  • Policy shift could attract trillions more
  • Increased liquidity may dampen volatility

Moreover, the SEC’s reversal of SAB 121, which required banks to record crypto as liabilities, further eases institutional crypto custody. This could encourage even more institutional investment, bolstering market stability.

The Road Ahead

While Trump’s order marks a pivotal step for institutional crypto adoption, how the market will respond long-term remains to be seen. Hougan maintains his forecast of Bitcoin reaching $200,000 by the end of 2025, but only time will tell if the four-year cycle is truly a relic of the past.

The crypto space is entering a new era, and all eyes are on the king of cryptocurrencies to see how it will adapt to the changing landscape.

Key Takeaways

  • Trump’s executive order could disrupt Bitcoin’s 4-year cycle
  • Institutional money may stabilize prices and reduce volatility
  • Bitcoin predicted to reach $200,000 by end of 2025
  • Crypto entering a new era of mass adoption and maturity

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