Matt Hougan, Chief Investment Officer at Bitwise Asset Management, shared an in-depth analysis on January 28, assessing the potential ramifications of President Donald Trump’s latest executive order on Bitcoin’s established four-year cycle.
“Last week, President Trump issued an executive order so overwhelmingly bullish for the crypto sector that it’s making me rethink everything,” Hougan stated. “The order officially declared the expansion of the U.S. digital asset ecosystem a ‘national priority.’ It also set the stage for a comprehensive regulatory framework and even considered the creation of a ‘national crypto stockpile.’ Combined with the pro-crypto stance of the current SEC, this directive opens the door for major Wall Street institutions and investors to enter the market at an unprecedented scale,” he elaborated.
While Bitcoin ETFs have already attracted significant capital, Hougan believes this executive action could push adoption even further. He highlighted how ETFs have already drawn hundreds of billions in investments, fueling the current market cycle. However, he asserted that Trump’s directive signals a shift toward full-scale mainstream adoption, concluding:
“The kind of mainstreaming envisioned in Trump’s executive order… I’m convinced will bring trillions.”
Bitcoin’s Historic Cycle Points to Massive Gains, Says Bitwise CIO
Matt Hougan, Chief Investment Officer at Bitwise Asset Management, examined Bitcoin’s historical trends, emphasizing its recurring four-year cycle. “Bitcoin has traditionally followed a four-year pattern—three years of significant growth followed by a pullback,” he explained.
He attributed the latest cycle to the market-wide deleveraging triggered by major collapses in 2022, including FTX, Three Arrows Capital, Genesis, BlockFi, and Celsius. “At Bitwise, we refer to this as the ‘Mainstream Cycle,’ driven by the increasing participation of institutional and mainstream investors,” he noted.
With Bitcoin already surpassing the $100,000 mark, Hougan remains optimistic about its future trajectory. “If history holds, 2025 should be a phenomenal year for crypto. And I believe it will be… We’ve gone on record predicting Bitcoin will double in value this year, exceeding $200,000,” he stated confidently.
Despite his bullish outlook, he acknowledged the potential for market corrections. “I don’t think we’ve completely moved past the four-year cycle. As the bull market progresses, leverage will build, excesses will emerge, and bad actors will surface,” he cautioned. However, he expects any downturn to be less severe and shorter-lived than in previous cycles, adding:
“I expect that any pullback will be shallower and shorter than in the past.”
Institutional adoption and regulatory clarity further bolster his confidence in Bitcoin’s long-term potential. “Right now, it’s full steam ahead—the crypto train is leaving the station,” he concluded.
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