Trump’s Executive Order Reshapes Bitcoin’s Market Cycle, Says Bitwise CIO

Matt Hougan, Chief Investment Officer at Bitwise, believes that President Donald Trump’s recent executive order could significantly alter Bitcoin’s (BTC) traditional four-year cycle, making downturns less severe and accelerating mainstream adoption.

Crypto’s Evolution Accelerates

In his latest memo, Hougan pointed to two major catalysts: Trump’s directive on digital assets and the Securities and Exchange Commission’s (SEC) growing acceptance of crypto. On January 23, President Trump signed an order to create a “national digital asset stockpile,” triggering a surge in crypto inflows to $1.9 billion.

“This order has opened the floodgates for Wall Street banks and institutional investors to enter the crypto space at an unprecedented scale,” Hougan noted.

He believes this moment could rival or even surpass previous milestones, such as Grayscale’s legal victory against the SEC in March 2023, which ultimately led to the approval of Bitcoin ETFs in January 2024.

Bitcoin’s Cycle Faces a Shift

Bitcoin’s historical pattern revolves around four-year halving cycles, where supply reductions fuel bull markets before inevitable corrections. Historically, Bitcoin saw major downturns in 2014, 2018, and 2022, with another pullback expected in 2026 if the trend holds.

However, Hougan suggests that this cycle may be evolving. He envisions a future where banks custody crypto like traditional assets, stablecoins integrate into global payments, and institutional investors establish deep positions in digital assets.

“This isn’t just another cycle—it’s the full mainstreaming of crypto, and it has the potential to bring in trillions,” he stated.

2025: A Strong Year for Crypto?

Despite potential volatility, Hougan remains bullish on crypto’s trajectory, predicting 2025 could be a breakout year. He highlighted the increasing presence of long-term, value-oriented investors who are reshaping the market.

“The crypto industry is maturing. While volatility will persist, I wouldn’t bet against Bitcoin in 2026,” Hougan concluded.

With regulatory tailwinds and institutional adoption accelerating, Bitcoin’s traditional cycle may be entering uncharted territory—one where corrections are shorter, and crypto’s integration into global finance is inevitable.