Trump's Order Threatens Bitcoin's 4-Year Cycle, Says Bitwise CIO

President Trump's executive order could disrupt Bitcoin's 4-year cycle, according to Bitwise CIO

President Trump's executive order, which aims to regulate cryptocurrencies, could potentially break Bitcoin's 4-year cycle, according to Bitwise Asset Management's Chief Investment Officer (CIO), Matt Hougan. In an interview with Bloomberg, Hougan stated that the order could lead to increased regulatory uncertainty, which could negatively impact Bitcoin's price and market dynamics.

Bitcoin's 4-year cycle is a well-known phenomenon in the crypto community, where the price of Bitcoin tends to peak every four years. The cycle is often associated with the halving event, where the block reward for mining Bitcoin is cut in half, leading to a decrease in the supply of new bitcoins and an increase in demand, which drives up the price.

However, Hougan believes that the increased regulatory uncertainty caused by Trump's executive order could disrupt this cycle. He stated that the order could lead to a "chilling effect" on the crypto market, where investors become more cautious and hesitant to invest in cryptocurrencies due to the uncertainty surrounding their regulatory status.

Hougan also noted that the order could lead to a "race to the bottom" among countries, where each country tries to attract crypto businesses by offering more favorable regulatory environments. This could lead to a situation where the United States loses its competitive edge in the crypto industry, which could have negative consequences for the U.S. economy.

Despite these concerns, Hougan remains optimistic about the long-term prospects of the crypto industry. He believes that the industry will continue to grow and innovate, despite the challenges posed by increased regulatory uncertainty. He also noted that the industry has already shown a remarkable ability to adapt and overcome regulatory challenges in the past.