Trump's Crypto Order: Wall Street's Green Light, Four-Year Cycle's Red

Bitwise CIO Matt Hougan has recently commented on the potential impact of U.S. President Donald Trump's executive order on the crypto market's four-year cycle. The order, signed on Jan. 23, aims to explore the creation of a digital asset stockpile and draft a regulatory framework for the crypto industry.

Hougan believes that this executive order, along with changes at the Securities and Exchange Commission (SEC), signals the "full mainstreaming of crypto." He expects that banks and Wall Street will now be able to move aggressively into the crypto space, potentially bringing in trillions of dollars from new investors. This could disrupt the traditional four-year boom and bust cycle that the crypto market has experienced over the last decade.

Hougan also predicts that the amount of fraud and bad actors in the crypto industry will fall dramatically over the next four years. He anticipates that industry leaders will put in place sensible regulations for crypto, reducing the risk to investors. This shift from regulation-by-enforcement to a more supportive environment could foster innovation within the crypto ecosystem.

Historically, cryptocurrencies, particularly Bitcoin, have experienced cyclical patterns of highs and lows. Hougan acknowledges that while the traditional four-year cycle remains, market dynamics are poised for transformation. He expects that forthcoming regulations could lower fraud instances and potentially reduce the severity of future downturns.

The recent executive order marks a significant shift in the regulatory landscape of cryptocurrency. It aims to create a regulatory framework that could allow large institutional players on Wall Street to invest more aggressively in digital assets, significantly influencing investment flows and overall market stability.

With institutional interest surging, particularly after changes that facilitate the custody of cryptocurrencies by banks, there's a belief that the entrance of large players will alter market dynamics. Many analysts foresee that substantial investment from these institutions could lead to longer bull periods.

Hougan holds a bullish stance on Bitcoin's trajectory, forecasting a potential price of $200,000 by the end of 2025. This prediction rests on the premise that even without a strategic Bitcoin reserve, the evolving regulatory framework could unlock significant new capital influx, driving up demand.

In conclusion, the crypto market stands at a crossroads, shaped by ongoing regulatory developments and institutional investments. While Hougan suggests that the traditional four-year cycle isn't vanishing entirely,