Matt Hougan, the Chief Investment Officer at Bitwise, has pointed out that a recent executive order from President Trump has the potential to alter the conventional four-year rhythm of the cryptocurrency market. Hougan elaborated on this expected influence in a note addressed to stakeholders.
What Does the Executive Order Include?
The executive order, named “Strengthening American Leadership in Digital Financial Technology,” focuses on fostering stablecoins, alleviating regulatory burdens on crypto assets, and assessing the establishment of a national cryptocurrency reserve.
How Will This Affect the Market Cycle?
The cryptocurrency market’s four-year cycle is typically influenced by Bitcoin‘s halving event, which halves miner rewards every four years, usually leading to price surges. Hougan contends that this new executive order could disrupt this cycle in a way that its effects might last for years. The integration of Wall Street into the crypto landscape and the formation of a new regulatory framework will require time to materialize.
– The executive order may foster innovation within crypto markets.
– A more diverse group of buyers is emerging.
– Hougan predicts that any market correction could be less severe than in prior years.
As the cryptocurrency landscape evolves, investors must remain vigilant. The true implications of the executive order will become more apparent over time, creating anticipation about how market dynamics will shift in the coming years.
