Bitwise CIO Matt Hougan Reveals How Trump’s Crypto Order Will Impact Bitcoin

Bitwise CIO Matt Hougan has suggested that the four-year cycle that has previously characterised Bitcoin could be disrupted by the latest executive order from president of the United States, Donald Trump. The cycle that has alternatively shown gains for three years and then a correction may not occur in 2026 as expected.

Bitwise CIO: Donald Trump Crypto Order Could Disrupt Bitcoin

According to Bitwise CIO Matt Hougan in a recent note, president Donald Trump executive order may extend Bitcoin’s bull market. BTC has usually been in a four-year cycle which is characterized by three years of Bull market and one year of Bear market. But, as Hougan pointed out, the new regulatory transparency and institutional participation may alter this trend.

Hougan explained that Bitcoin current market cycle started in 2023, following the deleveraging that occurred in 2022 due to failure of large-scale crypto projects. The spot Bitcoin ETFs approvals and launches in early 2024 contributed to the present price surge.

More so, Bitwise CIO predicted Bitcoin to reach $200,000 in 2025, driven by increased institutional participation and corporate investment.

Matt Hougan commented, 

“We’re on the record predicting that bitcoin’s price will double this year to above $200,000, driven by flows into ETFs and Bitcoin purchases by corporations and governments. That may turn out to be conservative.”

This development comes just days after the crypto market faced a sharp downturn, wiping out $120 billion in value as Bitcoin and Ethereum led the decline. Bitwise CIO Matt Hougan discussed the crash, highlighting BTC historical tendency to dip alongside equities but rebound strongly over time. Citing past data, he noted that Bitcoin typically sees an average 189% gain within a year after such corrections, suggesting a potential reversal ahead.

Institutional Adoption and Market Expansion

Bitwise CIO revealed that one of the critical aspects of Donald Trump executive order is its potential to accelerate institutional Bitcoin adoption. The order establishes digital assets as a national priority, providing a framework for regulatory oversight. Hougan believes this could attract capital from banks, asset managers, and corporations.

With clearer regulations, major Wall Street firms could enter the crypto market at an unprecedented scale. The involvement of these institutions would increase liquidity and contribute to stabilizing Bitcoin price. 

Following the increased Bitcoin adoption and the pro-crypto Trump administration, several states have moved to establish Bitcoin reserves. Most recently, Texas has prioritized its Bitcoin Reserve under Lt. Gov. Dan Patrick’s 2025 agenda. This move follows similar efforts in Utah, Oklahoma, and Massachusetts, signaling growing state-level interest in digital assets.

Four-Year Cycle May Weaken But Not Disappear

Despite the bullish outlook, Bitwise CIO acknowledged that market excesses could still lead to corrections. He pointed to increasing leverage in the system, including companies raising capital to buy Bitcoin and the rise of Bitcoin lending programs. While these factors indicate growing interest, they also introduce risks that could trigger short-term volatility.

Hougan does not expect Bitcoin’s four-year cycle to be eliminated. Instead, he anticipates that future corrections will be less severe and shorter in duration compared to previous downturns. He emphasized that the increasing presence of long-term investors, such as institutions and governments, could act as stabilizing forces in the market.

Donald Trump executive order has set the stage for a structured regulatory environment that could further legitimize Bitcoin and other digital assets. 

Meanwhile, Trump Media’s expansion into crypto investments has sparked market interest. The announcement of Truth.Fi and its $250 million investment plan boosted Trump Media stock (DJT) by 15% premarket.