Bitwise CIO Declares End of Four-Year Crypto Cycle

Bitwise CIO Declares End of Four-Year Crypto Cycle

Bitwise CIO Matt Hougan announced the end of the four-year crypto cycle, citing weakened halving impacts and increased institutional influence as key factors.

This shift highlights the growing dominance of institutional players in the digital asset market, potentially stabilizing Bitcoin and Ethereum price actions beyond traditional patterns.

Section 1

Bitwise CIO Matt Hougan announced the end of the traditional four-year crypto cycle. He attributed this shift to weaker halving impacts and increased institutional involvement across the crypto market. BTC and ETH are notably affected by these changes.

“The forces that have created the prior four-year cycles are weaker…Bigger players now dominate the crypto market, so supply-driven shocks like halvings play a lesser role in price action.”

Matt Hougan, Chief Investment Officer, Bitwise Asset Management

Institutional players now have a dominant field presence, diluting the market-movement effect of Bitcoin’s halving cycles. Hougan’s statements were shared during discussions with industry experts like Kyle Chassé and James Seyffart, highlighting a significant change in the crypto landscape.

Section 2

Bitcoin and Ethereum prices now reflect institutional rather than retail flows. Institutional adoption has surged, as evident from a 35% increase in related metrics . These shifts suggest a more institutional-driven trajectory for BTC and ETH price actions.

The approval of U.S. spot Bitcoin ETFs disrupted typical post-halving rally patterns. Hougan remarked that Bitcoin is reaching new highs due to regulatory clarity and market infrastructure improvements, rather than timing with historical halving cycles.

Section 3

With institutional adoption reshaping crypto markets, strong regulation and market infrastructure improvements become key. This environment decreases previous risks linked to crypto markets, leading to new patterns in major digital assets like BTC and ETH.

Strengthened regulatory frameworks are likely to guide future market dynamics, emphasizing institutional influence. Historical four-year cycles fade as new data and technological advances drive the crypto market, according to Hougan’s analysis .