Cryptocurrency's Four-year Cycle Experiences Alterations, as Uncovered by Bitwise CIO
In a significant development, Matt Hougan, Chief Investment Officer of Bitwise Asset Management, has announced that the traditional four-year crypto cycle is losing relevance. This shift, according to Hougan, is driven by institutional participation and regulatory advancements, moving the cryptocurrency market towards a new era characterized by sustained, steady growth and increased stability.
Pepeto has announced a $5.5M presale and demo trading platform, while 1RT Acquisition Corp. is set to raise $150M in an IPO. These developments are indicative of growing institutional interest in the cryptocurrency space.
Bitcoin, the dominant cryptocurrency, currently trades at $116,325.41 with a market cap of $2.31 trillion, accounting for 60.43% of the cryptocurrency market. Rising ETF interest, Wall Street's entry into the cryptocurrency landscape, and the passage of the GENIUS Act are changes that could overshadow traditional halving effects.
The MACD flash suggests Dogecoin could reach $0.70. Binance has launched ZORAUSDT and TAGUSDT futures with 50x leverage, adding to the platform's cryptocurrency offerings.
However, this period may redefine market expectations, paving the way for a new stable era, drawing parallels to historical transformative phases propelled by legal and financial integrations.
Tether has frozen $1.6M USDT linked to a Gaza network, while crypto firms are seeking access to Federal Reserve accounts, signalling a shift towards greater regulatory clarity.
Kraken has secured a MiCA license for EU crypto operations, and OSL Group has raised HKD 23B for strategic expansion. These moves demonstrate a growing acceptance of cryptocurrencies by traditional financial institutions.
FATF urges stronger regulation after a $1.46B crypto theft, highlighting the need for increased security measures in the cryptocurrency space. WOO X has been hacked, losing $12M, underscoring this need.
Elon Musk has proposed a new American political party, while Trump is evaluating trade tariffs, with Hassett focusing on an onshoring strategy. Trump has also signed the GENIUS Act for stablecoin regulation.
Research by Coincu highlights potential regulatory outcomes with a focus on institutional ETF growth. Pure Crypto plans a fourth fund, seeing a final boom opportunity. Trump's criticism of Fed Chair Powell has sparked market speculation.
The shift away from the four-year crypto cycle is emphasized by institutional adoption, regulatory advancements, and the influence of ETFs over Bitcoin's traditional halving events. However, Hougan warns of potential risks, such as potential fragility in entities holding Bitcoin through debt or equity issuance, which could impact stability during downturns.
Nevertheless, overall, Hougan is optimistic that these institutional and regulatory developments will result in greater market stability, reducing reliance on speculative cycles and fostering a more mature investment environment. This transition is expected to lead to a "sustained steady boom," contrasting with past volatile cycles, and positioning 2026 as a key year for mainstream adoption and market maturation.
In summary, according to Matt Hougan, institutional participation and regulatory progress are currently driving a more stable, steady, and sustainable growth phase in cryptocurrency markets, effectively ending the old cyclical volatility and positioning crypto assets for long-term mainstream financial acceptance.
Technology is playing a significant role in this new era of cryptocurrency finance, with platforms like Pepeto and Binance offering innovative products to attract institutional investors.
The corporate world is also integrating cryptocurrency into their operations, as seen with Tether freezing USDT linked to a Gaza network, and crypto firms seeking access to Federal Reserve accounts, demonstrating a growing acceptance of digital assets by traditional financial institutions.
