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.

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