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The Coin Rise 2025-01-30 11:32:26

Bitwise Foresees Trillions in Crypto Market Growth Amid Trump’s Crypto Order

US President Donald Trump’s recent executive order , issued on January 23, has sparked speculation about the future of the crypto market. Matt Hougan, Bitwise’s investment chief, believes this sweeping move could disrupt the four-year market boom-and-bust cycle that Bitcoin and other cryptos have followed over the past decade. Hougan described the executive order as a pivotal step toward “the full mainstreaming of crypto,” paving the way for banks and Wall Street to aggressively enter the space. The directive, which calls for exploring a federal digital asset stockpile and drafting comprehensive regulatory frameworks, has positioned itself as a landmark moment for the sector. Hougan noted that this initiative could unlock trillions in new investments, dwarfing the billions already flowing through crypto ETFs. The Evolving Four-Year Crypto Cycle Over Bitcoin’s 16-year lifespan, it has experienced a well-known four-year pattern: significant pullbacks in 2014, 2018, and 2022, followed by record highs in the three years between each dip. Analysts predict the next major market correction to occur in 2026 if this trend continues. However, Hougan suggested that the cycle’s influence might be waning. He highlighted the presence of more value-driven investors and a broader base of buyers as factors mitigating market volatility. “We won’t fully escape the four-year pattern,” he said, “but any pullback will likely be shorter and less severe than in previous years.” Historical downturns, including the collapse of Mt. Gox and the SEC’s crackdown on initial coin offerings, were cited by Hougan as key contributors to past market falls. More recently, the bankruptcies of FTX, Three Arrows Capital , and other major players drove the 2022 downturn. Wall Street and Regulatory Changes A significant aspect of Trump’s executive order is its potential impact on Wall Street’s involvement in crypto. With the Securities and Exchange Commission (SEC) canceling its Staff Accounting Bulletin 121 rule, banks can now more easily custody cryptocurrencies without treating them as liabilities on their balance sheets. Though immediate effects are unlikely, Hougan emphasized that White House crypto czar David Sacks will need time to develop the framework while financial giants navigate the learning curve. Looking ahead, Bitwise remains optimistic, maintaining its bold prediction that Bitcoin could reach $200,000 by the end of 2025, regardless of whether a national strategic Bitcoin reserve is established. The post Bitwise Foresees Trillions in Crypto Market Growth Amid Trump’s Crypto Order appeared first on TheCoinrise.com .

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