Crypto’s Big Money Moment: Trillions on the Way?

Bitwise CIO Matt Hougan predicts a massive influx of institutional cash into the crypto market, thanks to a shift in the US government’s stance on digital assets.

A New Era for Crypto?

Hougan points to President Trump’s executive order on digital assets (“Strengthening American Leadership in Digital Financial Technology”) as a game-changer. This, he says, will allow major financial institutions to jump into the crypto world in a big way. He envisions a multi-year migration of institutional capital, potentially disrupting the traditional four-year crypto market cycles tied to Bitcoin’s halving events.

Slow and Steady Wins the Race (Trillions)

Hougan acknowledges that this won’t happen overnight. He expects it will take at least a year to establish a clear regulatory framework and another year for large firms to shift gears and actually invest. He compares these institutions to “giant tankers, not speedboats.” However, the potential impact is huge. He contrasts the hundreds of billions brought in by ETFs with the trillions he anticipates from this shift in Washington’s approach.

Market Volatility Ahead?

While Hougan expects any future market dips to be less severe than in the past, he doesn’t rule out volatility. He anticipates that increased leverage, the emergence of bad actors, and eventual market corrections are all likely. In short, he expects a period of adjustment and some turbulence.

The Bottom Line

Hougan believes we’re entering a new mainstream era for crypto. While the future holds both opportunity and uncertainty, the potential for massive institutional investment is undeniable.