Matt Hougan, Chief Investment Officer at Bitwise, suggests that President Trump’s executive order might disrupt the traditional four-year cycle of the cryptocurrency market. In a recently published note, Hougan explained this potential impact to investors.
Content of the Executive Order
Trump’s executive order titled “Strengthening American Leadership in Digital Financial Technology” includes promoting stablecoins, ending regulatory pressures on crypto assets, and evaluating a national crypto reserve.
The four-year cycle in the cryptocurrency market is shaped by Bitcoin 
$80,339’s halving event, which occurs every four years and halves the rewards for BTC miners. These events typically trigger price increases. Hougan stated that this executive order could disrupt the four-year cycle in the crypto market, with effects potentially lasting for years. The establishment of a new regulatory framework and the integration of Wall Street into crypto will take time.
“The positive effects of the EO and other changes in Washington will be felt over the years.” – Hougan.
Hougan noted that the crypto market has matured and that a more diverse array of buyers is now in play, suggesting that any potential correction may be shorter and shallower than in previous years.
“I expect volatility, but I won’t bet against crypto in 2026.” – Hougan.
Currently, Hougan emphasized that the crypto market continues to progress rapidly, signaling that the momentum of the crypto train is ongoing.
Future of the Cryptocurrency Market
Despite uncertainties surrounding the future of crypto assets with the market’s maturation and increasing participation, Hougan anticipates sustainable growth within the crypto space. The company’s aggressive accumulation of BTC and state governments already forming public BTC reserves signify promising developments for the coming years. Moreover, the influx of individual investors has yet to begin, raising questions about when strong demand will trigger supply shortages on exchanges, consequently driving up prices.
As changes in the cryptocurrency market continue to unfold rapidly, it is essential for investors and institutions to tread carefully. The effects of the executive order will become clearer over time, leaving many eagerly awaiting how market dynamics will evolve.
