Trump's crypto order may shift Bitcoin's $200K cycle

President Donald Trump's recent executive order on cryptocurrencies could potentially disrupt Bitcoin's (CRYPTO:BTC) established four-year boom and bust cycle, according to Matt Hougan, Chief Investment Officer at Bitwise.

In a note published on January 29, Hougan explained that the executive order and changes at the SEC signify a significant shift towards mainstream adoption of cryptocurrencies.

He noted that banks and financial institutions may now engage more aggressively in the crypto space, which could lead to substantial investments.

Hougan believes that while the four-year cycle will not be completely overcome, any market pullbacks are likely to be "shorter and shallower" than in previous years.

Historically, Bitcoin has followed a four-year cycle characterised by significant price increases followed by pullbacks, with notable downturns occurring in 2014, 2018, and 2022.

The next anticipated pullback is expected in 2026 if the cycle continues as it has in the past.

“The crypto space has matured; there’s a greater variety of buyers and more value-oriented investors than ever before,” Hougan stated.

He expressed optimism about Bitcoin's future price trajectory, predicting it could reach $200,000 by the end of 2025, driven by increased institutional adoption and new investment flows into exchange-traded funds (ETFs).

The impact of Trump's executive order may not be immediate, as regulatory frameworks take time to develop.

However, Hougan emphasised that the potential for a national digital asset stockpile could bring trillions of dollars into the market.

He also pointed out that Wall Street banks can now more easily custody cryptocurrencies following changes in SEC regulations regarding accounting practices for crypto assets.

At the time of reporting, the Bitcoin (BTC) price was $105,492.