“Donald Trump’s executive order could change Bitcoin’s traditional four-year cycle,” said Matt Hougan, Chief Investment Officer at Bitwise.

On January 23, 2025, the U.S. President signed an order aimed at developing the country’s digital ecosystem. The document provides for the creation of a national crypto reserve and the establishment of clear regulatory frameworks. According to Hougan, this could lead to the mass adoption of cryptocurrencies by banks and investment funds.

“Institutional participation in the crypto market will grow,” the expert noted. He also predicts that capital inflows will amount to trillions of dollars, making the market more resilient and reducing the impact of traditional speculative cycles.

However, Hougan warns that downturns cannot be completely avoided. “Bitcoin cycles won’t disappear, but future corrections will be less sharp and shorter,” he added.

The crypto market has previously experienced serious shocks. In 2022, bankruptcies of FTX, Three Arrows Capital, and Celsius caused a market crash, while earlier, the collapse of Mt. Gox and strict regulatory measures had similar effects. However, Bitcoin has always recovered.

The full effect of Trump’s order will not be immediate. “Financial institutions will need time to adapt,” noted White House crypto advisor David Sacks. However, the repeal of the SEC’s Staff Accounting Bulletin 121 has already made it easier for banks to store digital assets.

According to Bitwise, Bitcoin’s price could reach $200,000 by the end of 2025. “Even without a national Bitcoin reserve, the growth potential remains enormous,” concluded Hougan.