Bitwise CIO: Trump's executive order may break the 4-year cycle of the crypto market, and the "crypto winter" in 2026 may not be as severe as expected

PANews reported on January 30 that Matt Hougan, chief investment officer of Bitwise, recently wrote an article analyzing that Trump's latest executive order may become a key catalyst to break the four-year cycle of the crypto market. The executive order lists the development of the digital asset ecosystem as a "national priority", clearly proposes to establish a clear crypto regulatory framework, and plans to establish a "national crypto reserve" to pave the way for Wall Street's big banks and investors to enter the crypto field on a large scale.

Hougan pointed out that the four-year cycle of the crypto market is usually triggered by technological breakthroughs or market events, including bull markets, leverage accumulation, market overheating and subsequent pullbacks. However, Trump's executive order may have far-reaching effects, promoting banks to custody crypto assets, stablecoins to be widely integrated into the payment system, and institutional investors to deploy crypto assets on a large scale. He predicts that this series of changes may attract trillions of dollars of new capital to flow into the market.

Although Hougan believes that the market may still experience short-term fluctuations, he expects the magnitude and duration of future pullbacks to be shorter than before. He said that as the crypto market matures and the investor structure becomes more diversified, the "crypto winter" in 2026 may not be as severe as expected. At present, he believes that the market is still in a fully bullish stage, and the crypto industry is ushering in a new era of mainstreamization.

Earlier news, Bitwise CIO: BTC's pullback this time is only a short-term fluctuation and has not changed the long-term bullish trend of the crypto market.