Bitcoin News Today: Bitwise CIO Declares Four-Year Crypto Cycle Dead as Institutional Adoption Drives 35% Growth

Bitwise Asset Management’s CIO, Matt Hougan, has announced the conclusion of the traditional four-year crypto market cycle, signaling a structural shift driven by institutional adoption and ETF-driven growth. Historically, the cycle was defined by Bitcoin’s halving events and corresponding price surges, but Hougan argues that these patterns are dissolving as regulatory clarity and infrastructure maturation redefine the sector. “The forces that created prior cycles are weaker,” he stated, projecting a “steady and sustained boom” starting in 2026 [1]. This declaration marks a pivotal moment for the industry, as traditional metrics lose relevance and new dynamics take center stage.

The transition is underscored by a 35% year-on-year increase in institutional investment, with corporate Bitcoin holdings now accounting for 59% of total supply [2]. Hougan attributes this shift to the growing dominance of institutional players, which are reshaping market behavior. ETFs, in particular, have become a key catalyst, mirroring equity market structures and fostering long-term stability. “ETF adoption is creating a new era of sustained growth,” he emphasized, noting that Wall Street firms are poised to inject billions into the sector amid regulatory advancements [3].

Legislative developments further reinforce this transformation. The U.S. Senate’s proposed Responsible Financial Innovation Act aims to clarify digital asset classifications, while the GENIUS Act targets stablecoin monopolization by Big Tech and financial giants, introducing stricter oversight for non-bank issuers [4]. These measures reflect a regulatory environment prioritizing stability and accessibility, which Hougan views as critical for institutional confidence. However, regulatory uncertainty persists; the SEC’s abrupt reversal on approving Bitwise’s 10 Crypto Index ETF highlighted internal divisions but also underscored crypto’s growing legitimacy as a tradable asset [5].

The implications for 2026 are significant. Hougan forecasts continued institutional inflows and regulatory progress, positioning crypto as a mainstream asset class. Yet challenges remain, including evolving regulations and geopolitical factors like U.S. Treasury efforts to curb stablecoin dominance. Bitwise’s analysis suggests a maturing industry where diversified portfolios, including Ethereum and altcoins, reduce reliance on single-asset dynamics [6]. This diversification, combined with improved infrastructure such as custodial solutions and exchange listings, creates a more robust ecosystem less susceptible to boom-and-bust patterns.

For investors, the end of the four-year cycle demands a strategic pivot. Historical models tied to halving events are no longer reliable, and market participants must now navigate a landscape defined by institutional leadership and regulatory innovation. Hougan’s declaration challenges stakeholders to reorient their focus toward structural trends rather than cyclical expectations, as the crypto market transitions into a phase of sustained, regulated growth.

Source:

[1] TheCryptobasic, Bitwise CIO Declares Crypto Four-Year Cycle Dead, https://thecryptobasic.com/2025/07/25/bitwise-cio-declares-crypto-four%E2%80%91year-cycle-dead-predicts-steady-and-sustained-boom-from-2026/

[2] AInvest, Bitcoin Institutional Adoption Sparks 35% YoY Growth, https://www.ainvest.com/news/bitcoin-news-today-bitcoin-institutional-adoption-sparks-35-yoy-growth-corporate-holdings-btc-dominance-reaches-59-3-2025-2507/

[3] Mitrade, Crypto Market's Four-Year Cycle Is 'Dead', https://www.mitrade.com/au/insights/news/live-news/article-3-988765-20250726

[4] Cryptonews, GENIUS Act Hits Big Tech in Stablecoin Sector, https://cryptonews.com/news/weekly-crypto-regulation-news-roundup-genius-act-hits-big-tech-sec-reverses-on-etf/

[5] Cryptonews, SEC Reverses Bitwise ETF Approval, https://cryptonews.com/news/weekly-crypto-regulation-news-roundup-genius-act-hits-big-tech-sec-reverses-on-etf/

[6] Morningstar, Bitwise Announces Monthly Distributions for IMST, ICOI, https://www.morningstar.com/news/business-wire/20250724336205/bitwise-announces-monthly-distributions-for-imst-icoi-imra-and-igme