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How Trump’s Crypto Policies Could Push Bitcoin to New Heights

Bitcoin future

Bitcoin’s rise to fame has been marked by unpredictable swings. For years, the world’s most popular cryptocurrency has followed a four-year cycle of rapid growth followed by sharp crashes. But could this traditional pattern be about to change? As Bitcoin has matured, so has the political landscape. And under Donald Trump’s leadership, there could be significant shifts that propel Bitcoin to new all-time highs, possibly breaking the usual four-year cycle.

Bitcoin’s Historical Four-Year Cycle

For those who closely follow Bitcoin, the four-year cycle has been a predictable pattern. Over the years, Bitcoin’s price has experienced both soaring highs and painful lows, often following a consistent boom-and-bust cycle.

For instance, in 2014, Bitcoin experienced a dramatic -57.6% drop. The same pattern occurred in 2018 and 2022, with crashes of -73.3% and -64.3%, respectively. These fluctuations have led many to believe that every fourth year signals a downturn for Bitcoin, with 2026 looking to be a particularly tough year based on past trends.

While this four-year cycle may be well known, Bitcoin’s market has evolved significantly, thanks in part to increasing institutional involvement and more clarity around regulations. And it’s this evolving landscape that could prevent Bitcoin from falling into its usual pattern of decline.

How Trump’s Policies Could Shape Bitcoin’s Future

When Donald Trump entered the White House, many people saw his policies as business-friendly, especially in the world of finance and technology. Since then, Trump has made moves that could significantly affect Bitcoin’s market value.

One of the most crucial actions he took was signing an executive order aimed at providing greater clarity around crypto regulations. The executive order explored ways the U.S. could create a digital assets reserve and enhance the regulatory framework for cryptocurrency. For many in the crypto industry, this was a green light signaling that the U.S. government was more open to supporting digital currencies.

By laying the groundwork for more straightforward regulations, Trump helped make Bitcoin more attractive to institutional investors. This move, combined with a push to explore a digital asset reserve, could inject trillions of dollars into the Bitcoin market, driving up its price.

Another significant step was the withdrawal of the controversial Staff Accounting Bulletin 121 rule. Before it was overturned, this rule required financial firms to list crypto assets as liabilities, making them less appealing to potential investors. Now that the rule has been repealed, it is easier for institutions to hold Bitcoin, helping to bolster Bitcoin’s legitimacy in traditional financial markets.

Bitcoin’s Price Surge Predictions

With Trump’s favorable crypto policies and Wall Street’s growing interest in digital assets, experts like Matt Hougan, Global Head of Research at Bitwise Asset Management, are becoming increasingly bullish on Bitcoin’s future. Hougan believes that Bitcoin’s price could soar to as high as $200,000 by the end of 2025.

The main reason behind Hougan’s optimism is the rapidly increasing participation of institutional investors. These investors, who traditionally stuck to stocks and bonds, are now seeing Bitcoin as a legitimate and attractive asset class. With Bitcoin becoming more accessible and accepted, the digital currency could be positioned to reach unprecedented highs.

Trump’s policies play a big role in this shift, with many in the crypto community feeling that the regulatory clarity and infrastructure will make it easier for Bitcoin to break through the barriers that once held it back. Whether it’s the creation of a Bitcoin reserve or the favorable regulatory changes, these moves could be the catalyst Bitcoin needs to escape the four-year cycle and hit new price milestones.

Will Bitcoin Avoid the Crash of 2026?

Bitcoin’s traditional four-year cycle suggests that 2026 could be another year of market volatility. But many experts now believe that the increased involvement of institutional investors, combined with supportive policies from the U.S. government, could help Bitcoin break free from the typical boom-and-bust pattern.

While no one can predict the future with certainty, the increasing maturity of the crypto market and the shifting political environment could mean that Bitcoin is more resilient than ever. Even though the market may experience volatility in the future, the groundwork being laid now could help Bitcoin weather the storm and continue to rise.

Conclusion: A Stronger Future for Bitcoin

Bitcoin’s history has been filled with dramatic highs and lows, but the future looks brighter than ever. Thanks to Trump’s crypto-friendly policies and increasing institutional interest, Bitcoin could be on the verge of a major price surge. Experts predict that the price of Bitcoin could reach $200,000 by 2025, driven by the U.S. government’s support and Wall Street’s involvement.

While the traditional four-year cycle might suggest a downturn in 2026, Bitcoin’s future appears stronger than ever. If Trump’s policies continue to favor the crypto industry, Bitcoin could become a mainstream asset, far surpassing its previous price milestones.

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Evie

Evie is a blogger by choice. She loves to discover the world around her. She likes to share her discoveries, experiences and express herself through her blogs.

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