July 26, 2025
5 min read
Coin World
Bitwise CIO Matt Hougan says the traditional four-year crypto cycle is over as institutional adoption surges 35%, signaling a new era of sustained growth.
Bitwise CIO Declares End of Four-Year Crypto Cycle Amid Institutional Adoption Surge
Bitwise Asset Management’s Chief Investment Officer, Matt Hougan, has declared the traditional four-year cryptocurrency market cycle obsolete. This cycle, historically used to predict price trends based on Bitcoin halvings, macroeconomic shifts, and speculative trading, is now being replaced by a new market dynamic driven by institutional adoption, regulatory clarity, and evolving investment strategies. Hougan made these remarks during a recent Telegram discussion, emphasizing that the factors which once drove cyclical peaks and troughs—such as Bitcoin’s halving events—have diminished in influence. Instead, the crypto market is entering an era characterized by sustained growth rather than periodic volatility.Institutional Adoption Reshaping Crypto Market
Institutional participation in crypto has surged by 35%, according to Bitwise, a shift attributed to improved market infrastructure and clearer legal frameworks. This influx of institutional capital is reshaping the behavior of major cryptocurrencies like Bitcoin and Ethereum, which are now influenced more by long-term investment strategies than by speculative cycles. Hougan noted, “Bigger players now dominate the crypto market,” suggesting that traditional supply-driven shocks, such as halvings, will play a diminishing role in price movements going forward.Regulatory Developments Signal Growing Confidence
Regulatory clarity remains a key factor in this transformation. The U.S. Securities and Exchange Commission’s (SEC) recent approval and immediate suspension of Bitwise’s crypto ETF conversion highlight the complex but evolving regulatory landscape. While such regulatory actions introduce some uncertainty, Hougan views them as indicators of growing institutional confidence in crypto products. ETF approvals are expected to stabilize markets by channeling capital into regulated investment vehicles, reducing reliance on volatile retail speculation. This trend is already reflected in Bitcoin’s recent price performance, which has outpaced supply metrics ahead of the typical August lull, signaling resilience in a maturing market.Future Outlook: Innovation and Enterprise Integration
Looking ahead, Hougan envisions technological adoption and enterprise integration as key drivers of continued growth in the crypto space. Ethereum’s upcoming network upgrades and potential demand shocks could push its price to an estimated $6,404 by the end of the year, according to analyst projections. However, Hougan cautions that the next phase of crypto’s evolution will not follow historical cyclical patterns but will instead focus on “building new ones,” emphasizing innovation and alignment with institutional investors.Broader Industry Implications
The shift towards sustained institutional interest, combined with regulatory progress such as the GENUIS Act and the Senate Banking Committee’s proposed "Responsible Financial Innovation Act," is expected to attract both talent and capital to the sector. Companies like Coinbase are already expanding hiring efforts, reflecting a growing perception of cryptocurrency as a legitimate asset class. Despite ongoing challenges—including fragmented regulations and lingering skepticism—Hougan’s analysis suggests that a foundation for prolonged growth in the crypto market is being established.Source: Bitcoin News Today: Bitwise CIO Declares Four-Year Crypto Cycle Dead Citing 35% Institutional Adoption Surge