Bitwise CIO: Trump Executive Order May End Crypto’s Boom-Bust Cycles
The four-year boom-bust cycle that the cryptocurrency market has experienced over the past ten years may be broken by US President Donald Trump’s recent executive order, according to Bitwise Investment Chief Matt Hougan. According to Hougan’s Jan. 29 memo, the full mainstreaming of cryptocurrency has been brought about by Trump’s expansive Jan. 23 order and changes at the Securities and Exchange Commission, allowing Wall Street and banks to enter the market with vigor.
Crypto exchange-traded funds, he continued, were large enough to attract billions of dollars from new investors. Still, he is certain that Trump’s executive order to design a regulatory framework and investigate building a digital asset stockpile will generate trillions and more.
Crypto Market Maturation May Soften 2026 Downturn, Says Bitwise CIO
Throughout its 16-year history, Bitcoin has typically fluctuated in four-year cycles, experiencing falls in 2014, 2018, and 2022 but reaching new highs in the three years in between each decline. 2026 is when the next decline is anticipated, assuming the cycle continues. According to Hougan, the industry will not entirely break free from the four-year cycle, but any decline will be less severe and shorter than in previous years.
The crypto space has matured; there’s a greater variety of buyers and more value-oriented investors than ever before. I expect volatility, but I’m not sure I’d bet against crypto in 2026.
Hougan
Bankruptcies from the likes of FTX, Three Arrows Capital, Genesis, BlockFi, and Celsius contributed to the 2022 market fall, while the SEC’s initial coin offering crackdown and Mt. Gox’s collapse were two of the main catalysts behind the pullbacks in the earlier cycles, Hougan noted. Moreover, he said the effect of Trump’s order won’t be on full display right away, as White House crypto czar David Sacks will need time to craft a regulatory framework, while Wall Street’s behemoths will need even more time to realize crypto’s potential fully.
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