News 
January 31, 2025 
3 min. 
The recent executive order on cryptocurrencies issued by U.S. President Donald Trump may disrupt Bitcoin’s traditional four-year cycle. Matt Hougan, Chief Investment Officer at Bitwise, suggests that this measure, combined with changes at the U.S. Securities and Exchange Commission (SEC), is accelerating the mainstream adoption of cryptocurrencies. This, in turn, is enabling banks and Wall Street institutions to enter the sector aggressively.
Is Bitcoin’s Cycle Coming to an End?
Historically, Bitcoin (BTC) has followed a four-year cycle, with significant downturns in 2014, 2018, and 2022, followed by peaks in the subsequent years. If this pattern holds, the next correction would be expected in 2026.
However, Hougan believes that while the market may not completely break away from this cycle, future corrections will be “shorter and less intense” due to the sector’s maturation and a more diversified investor base.
The executive order establishes a task force to recommend a federal regulatory framework for digital assets and assess the creation of a national reserve. Additionally, it prohibits the development of a central bank digital currency (CBDC) in the U.S. Meanwhile, industry leaders see this initiative as a positive development and a significant shift in the country’s digital asset policy.
The appointment of David Sacks as the White House’s crypto policy lead and the potential creation of a Bitcoin reserve are viewed as moves that could attract trillions of dollars in investments. These actions signal a push toward the legitimization and broader adoption of cryptocurrencies within traditional financial markets.
With these changes, the crypto market may be on the verge of a major transformation. The traditional cyclical fluctuations of Bitcoin could give way to more stable and sustained growth—driven by integration with financial institutions and a more favorable regulatory environment.
