Expert Insights on Trump's Executive Order and Its Impact on the Cryptocurrency Market

The Potential Mainstreaming of Crypto

Matt Hougan, Chief Investment Officer at Bitwise, has shared his thoughts on the potential impact of President Donald Trump's recent executive order on the cryptocurrency market. The order, issued on January 23, combined with regulatory changes at the Securities and Exchange Commission (SEC), could signal the "full mainstreaming of crypto." Hougan believes this shift could pave the way for banks and Wall Street to enter the crypto space more aggressively.

Historical Market Cycles and Future Outlook

Hougan highlighted the crypto market's historical four-year boom and bust cycle, noting significant pullbacks in 2014, 2018, and 2022. However, he expressed optimism that future downturns may be "shorter and shallower" due to the increased maturity of the crypto space. The market now attracts a broader range of buyers, including value-oriented investors, which could stabilize volatility.

Regulatory Developments and Industry Impact

The implementation of Trump's executive order, which includes exploring a digital asset stockpile and establishing a regulatory framework, is not expected to yield immediate effects. Hougan noted that David Sacks, the White House's crypto czar, will need time to develop these regulations. Additionally, the SEC's decision to cancel its Staff Accounting Bulletin 121 rule could simplify custodial services for cryptocurrencies, further facilitating Wall Street's entry into the market.

Bitcoin Price Prediction

Hougan reiterated Bitwise's bold prediction that Bitcoin's price could reach $200,000 by the end of 2025. He emphasized that this target is achievable regardless of whether a strategic Bitcoin reserve is established.

In conclusion, Hougan remains cautiously optimistic about the crypto market's prospects, despite expected volatility and the 2026 cycle pullback.