Bitwise CIO Matt Hougan suggests that Trump’s executive order on a U.S. digital asset reserve could disrupt Bitcoin’s traditional four-year cycle , according to The Block . Hougan predicts that Bitcoin (BTC) could surpass $200,000 in 2025 , driven by ETF inflows and increasing institutional adoption . However, he also warns of rising speculation , which could introduce new market dynamics . Unlike past cycles that saw major pullbacks , Hougan believes that regulatory clarity and institutional involvement may lead to shallower corrections , signaling a new phase in Bitcoin’s mainstream adoption . How Trump’s Crypto Order Could Change Bitcoin’s Market Cycle Bitcoin has historically followed a four-year cycle , with boom-and-bust patterns linked to its halving events . However, Trump’s digital asset reserve policy could shift this dynamic. Key Ways Trump’s Executive Order May Impact Bitcoin: Increased Government & Institutional Demand – If Bitcoin is recognized as a strategic asset , institutional and sovereign wealth fund interest may surge . Bitcoin’s Four-Year Cycle Could Shift – More consistent institutional inflows could reduce market volatility . Potential for Shallower Corrections – Unlike previous crashes post-bull runs , Bitcoin may experience more stable price action . Speculation Risks Remain – Despite stability, excessive speculation could introduce new risks to the market. If Trump’s policy accelerates institutional BTC adoption , it could reshape Bitcoin’s market cycle permanently . Bitcoin’s Path to $200K: ETF Inflows & Institutional Adoption Bitcoin’s strong institutional backing is fueling predictions of a $200K price target in 2025 . Key Factors Driving Bitcoin’s Growth: ETF Inflows Surpassing $38B – Bitcoin ETFs have attracted major institutional capital , reinforcing long-term demand. Corporate & Pension Fund Adoption – More traditional investors are entering BTC markets , shifting it from a speculative asset to a reserve asset . Geopolitical & Economic Factors – Bitcoin’s store-of-value appeal is increasing amid economic uncertainty . With government and institutional participation growing , Bitcoin may see a fundamentally different price trajectory . Will Bitcoin’s Market Cycle Permanently Change? Historically, Bitcoin’s boom-and-bust cycles have been driven by: Halving Events – BTC’s supply reduction fuels bullish momentum . Retail Speculation – FOMO-driven rallies lead to massive sell-offs . Lack of Institutional Stability – Absence of large-scale financial players contributed to extreme volatility . However, if Trump’s policy and institutional backing stabilize Bitcoin , the market could shift toward: Smoother Growth Curves – Less dramatic peaks and crashes . More Gradual Accumulation – Large investors accumulating BTC over time, reducing wild price swings . Bitcoin as a Strategic Reserve Asset – Governments and institutions holding BTC long-term , reinforcing price stability . A fundamental shift in Bitcoin’s cycle could mean fewer extreme corrections and a more predictable market structure . What’s Next for Bitcoin & Crypto Regulation? Potential $200K Bitcoin in 2025 – If ETF inflows remain strong, BTC could reach new highs . Regulatory Clarity Could Boost Adoption – Government policies may accelerate institutional involvement. Bitcoin’s Role in a Digital Reserve System – Further policy discussions may determine whether Bitcoin becomes a recognized financial reserve asset . With Trump’s crypto policy reshaping market dynamics , Bitcoin’s future may look very different from past cycles . FAQs What did Bitwise CIO Matt Hougan say about Bitcoin’s cycle? Hougan believes Trump’s executive order could disrupt Bitcoin’s four-year cycle , leading to shallower corrections and a more stable market . Could Bitcoin really hit $200K in 2025? Yes, according to Hougan, Bitcoin ETF inflows, institutional adoption, and regulatory clarity could drive BTC past $200K . How does Trump’s executive order affect Bitcoin? It signals greater government and institutional involvement , which could reduce volatility and change BTC’s historical market cycles . Will Bitcoin still follow its four-year halving cycle? If institutional buying stabilizes Bitcoin , halving cycles may become less influential , leading to more consistent price appreciation . What are the risks of Bitcoin’s changing market cycle? While institutional backing can reduce crashes , increased speculation and over-leverage could introduce new risks . Conclusion Bitwise CIO Matt Hougan’s prediction suggests that Bitcoin’s historical market cycle may be shifting , thanks to Trump’s executive order and growing institutional participation . With ETF inflows exceeding $38 billion and institutional investors accumulating Bitcoin , BTC’s price action could become more stable, reducing extreme corrections . As Bitcoin gains recognition as a strategic asset , its path to $200K in 2025 may no longer follow past cycles , marking a new era for crypto markets . To learn more about the innovative startups shaping the future of the crypto industry, explore our article on latest news , where we delve into the most promising ventures and their potential to disrupt traditional industries.
