No More Bitcoin Bear Markets Ever? Fund CIO Explores New Market Reality

No More Bitcoin Bear Markets Ever? Fund CIO Explores New Market Reality

Summary

Matt Hougan, Chief Investment Officer at Bitwise, suggests the historical four-year Bitcoin market cycle may be ending due to significant changes in US crypto policy, particularly a recent executive order from President Trump promoting digital asset leadership. This cycle typically features three years of gains followed by a pullback, driven by broader economic patterns. The current crypto upswing, termed the “Mainstream Cycle,” began in March 2023 after Grayscale's legal victory regarding a spot Bitcoin ETF, leading to increased investor interest and inflows. Trump's executive order aims to establish a clearer regulatory framework and a potential national crypto stockpile, which could attract trillions in investments. While acknowledging the possibility of future pullbacks, Hougan believes they may be shorter and less severe due to a more diverse investor base and improved industry infrastructure. Bitcoin was trading at $105,275 at press time.

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