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The cryptocurrency market is on the brink of an unprecedented transformation as experts predict a massive influx of capital following a groundbreaking executive order by U.S. President Donald Trump. This regulatory shift is expected to propel crypto into full mainstream adoption, potentially disrupting Bitcoin’s traditional four-year cycle. With Wall Street poised to flood the market with trillions of dollars, the landscape of digital assets could be reshaped, solidifying crypto’s dominance in the global financial system.
Full Mainstreaming of Crypto Could Disrupt Bitcoin’s Four-Year Cycle—Trillions Poised to Enter the Market
Matt Hougan, Chief Investment Officer at Bitwise Asset Management, released an analysis on January 28 discussing the potential impact of President Donald Trump’s recent executive order on Bitcoin’s long-standing four-year cycle.
In his analysis, Hougan expressed that the executive order was overwhelmingly bullish for the crypto space, leading him to question its potential implications. He explained that the order had designated the expansion of the U.S. digital asset ecosystem as a “national priority,” outlined a path toward a clear regulatory framework, and even considered establishing a “national crypto stockpile.” He further pointed out that, combined with recent actions taken by a now pro-crypto SEC, the order had created a gateway for major Wall Street banks and institutional investors to enter the space aggressively.
Source: create.vista.com
While Bitcoin ETFs had already attracted significant capital inflows, Hougan suggested that the executive action could drive adoption even further. He emphasized that ETFs had introduced new investors into the market, fueling the current cycle. However, he argued that the full-scale mainstreaming of crypto—enabled by Trump’s executive order—would likely result in the influx of trillions of dollars into the industry.
Analyzing Bitcoin’s historical patterns, Hougan noted that the cryptocurrency had traditionally followed a four-year cycle, consisting of three strong bullish years followed by a period of correction. He attributed the latest cycle to the widespread deleveraging triggered by major industry collapses in 2022, such as those involving FTX, Three Arrows Capital, Genesis, BlockFi, and Celsius. At Bitwise, he explained, this pattern was referred to as the “Mainstream Cycle,” characterized by the growing participation of mainstream investors in the crypto market.
With Bitcoin already surpassing $100,000, Hougan projected further gains, stating that if the traditional four-year cycle remained intact, 2025 would be an exceptionally strong year for crypto. He reaffirmed Bitwise’s position that Bitcoin’s price was likely to double within the year, potentially exceeding $200,000.
Despite his bullish outlook, he acknowledged the possibility of market corrections, predicting that leverage would increase as the bull market continued, leading to excesses and the emergence of bad actors. However, he expressed confidence that any downturn would be less severe and shorter-lived than in previous cycles.
Institutional investment and regulatory clarity reinforced his belief in Bitcoin’s long-term trajectory. Concluding his analysis, he affirmed that, for now, the crypto market appeared to be moving forward at full speed, emphasizing that the “crypto train” was leaving the station.
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