"Trump shakes the crypto world: Goodbye to Bitcoin's 4-year cycle?"
The chief investment officer of Bitwise, Matt Hougan, has pointed out that President Donald Trump's recent executive order could radically transform Bitcoin's cyclical behavior. Traditionally, Bitcoin has followed a four-year cycle: three years of growth followed by one year of correction. However, Hougan suggests that the increasing institutional interest and regulatory changes driven by the Trump administration could soften these fluctuations, reducing the intensity and duration of declines.
Trump's executive order, issued on January 23, proposes the creation of a national reserve of digital assets and establishes a more favorable regulatory framework for cryptocurrencies. Hougan believes that these measures will facilitate greater participation from banks and institutional investors in the crypto market, which could attract multimillion-dollar investments and disrupt traditional Bitcoin patterns.
Although Hougan anticipates that Bitcoin could reach $200,000 in 2025 due to this institutional adoption, he warns about the risks associated with excessive leverage and speculation, which could lead to pullbacks in the market.
In summary, the pro-crypto policies of the Trump administration could signal the end of Bitcoin's traditional four-year cycles, paving the way for a more stable market but still susceptible to certain risks.
But, what do you think?
