Trump's Crypto Ties: $70B Hedge Fund Warns of "Havoc"

Trump's Crypto Ties and Potential Market Impact

President Donald Trump's recent executive order on cryptocurrencies has sparked speculation about its potential impact on the market. A $70 billion hedge fund has warned that these ties could cause "havoc," raising concerns about the future of digital assets.

Bitwise's Chief Investment Officer, Matt Hougan, believes that Trump's order could disrupt the long-standing four-year boom-and-bust cycle that has defined the crypto market for over a decade. This regulatory shift could challenge the widely accepted market pattern and alter how investors approach digital assets.

Historically, Bitcoin has followed a predictable four-year cycle, with three years of strong gains followed by a significant correction. However, Hougan believes that investors are beginning to question whether the next market reset will align with past cycles, given the growing influence of regulatory shifts and political developments in Washington.

The current mainstream crypto cycle emerged from the market turmoil of 2022, marked by the collapse of firms like FTX, Three Arrows Capital, and Celsius. The turning point came on 10 March 2023, when Grayscale secured an initial victory in its legal battle against the SEC, paving the way for spot Bitcoin ETFs. Their launch in January 2024 attracted institutional investors, driving Bitcoin's price from approximately $22,000 to over $100,000 within a year.

While regulatory shifts and political developments favor long-term crypto growth, their full impact may take years to materialize. Hougan questioned whether another "crypto winter" in 2025 would align with past market cycles, given the growing maturity of the industry and the resilience of the crypto space.

Meanwhile, Sam Bankman-Fried's family is actively exploring avenues for a presidential pardon as the FTX founder serves a 25-year sentence for fraud. His parents, both legal scholars, have engaged with lawyers and individuals linked to Donald Trump's inner circle, aiming to secure leniency. Trump's history of controversial pardons, including that of Silk Road founder Ross Ulbricht, has fueled speculation that Bankman-Fried could be next in line for clemency.

Bankman-Fried's pursuit of clemency follows a broader trend in Trump's approach to criminal justice, particularly regarding non-violent financial crimes. The president