Bitwise CIO: Bitcoin's Four-Year Cycle Has Ended, Entering the Institutional Era

On January 8, according to Financefeeds, Bitwise CIO Matt Hougan recently announced that Bitcoin's traditional "boom and bust" four-year cycle has officially come to an end. With financial giants such as Morgan Stanley, Merrill Lynch, and Wells Fargo actively promoting client allocation through spot ETFs, Bitcoin has officially entered the "institutional era."

Data shows that Bitcoin's volatility in 2025 is even lower than Nvidia stock, thanks to "sticky" funds such as pension funds and 401(k) accounts continuously absorbing market supply. Hougan expects Bitcoin to show lower correlation with traditional stock markets in 2026 and benefit from declining interest rates, improved regulatory clarity, and quantitative easing policies.

While the era of thousand-fold annual returns may be a thing of the past, this institutional-level growth provides investors with a more sustainable long-term value preservation path.