Bitwise CIO Matt Hougan says Washington’s new embrace of digital assets could open the doors for trillions of dollars of institutional money to enter the industry.
In a thread on the social media platform X, Hougan says that with President Trump’s executive order that focused on crypto – called “Strengthening American Leadership in Digital Financial Technology” – mainstream institutions can now dive into the industry “in a massive way.”
Hougan says that institutional capital may begin a multi-year migration into digital assets, potentially breaking the traditional four-year market cycle in crypto that has followed Bitcoin’s (BTC) halvings, an event that slashes miner rewards in half.
“The change in DC will be felt over the course of years, not months. In the absolute best-case scenario, it will take a year to align on a new regulatory framework for crypto, and a similar time period for big firms to move from planning to action.
Wall Street and mainstream institutions are like giant tankers, not speedboats. If institutions really start orienting to crypto next year, will we really have a new ‘crypto winter’ in 2026?
I’m not sure; the scale is so big. The ETFs (exchange-traded funds) brought hundreds of billions of new investor capital into crypto. The change in DC will bring trillions.”
Instead of a long and deep bear market, Hougan says that any potential pullbacks will be “significantly shorter and shallower than in years past.”
“What does it mean? It doesn’t mean the four-year cycle is quite going away. Leverage will build up. Excess will appear. Bad actors will emerge. And at some point, that could get washed out, which will introduce volatility into the market…
We’re in a new mainstream era of crypto. It’s going to be interesting.”
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