Bitwise CIO: The four-year cycle of Bitcoin has ended, entering the institutional era

DeepFlowTech · 2026-01-08T08:36:13+00:00

Bitwise CIO Matt Hougan stated that the traditional cycle of Bitcoin has ended and is entering the institutional era, with financial giants driving client allocations through spot ETFs. It is expected that by 2025, Bitcoin's volatility will decrease and its correlation with traditional stock markets will weaken, providing investors with more sustainable long-term value.

DeepFlowTech

2026-01-08 08:36:13

Abstract generation in progress

Deep Tide TechFlow News, January 8th, according to Financefeeds, Bitwise CIO Matt Hougan recently announced that the traditional four-year “boom and bust” cycle of Bitcoin has officially ended. As financial giants like Morgan Stanley, Merrill Lynch, and Wells Fargo actively promote client allocations through spot ETFs, Bitcoin has officially entered the “institutional era.”

Data shows that in 2025, Bitcoin’s volatility will be even lower than Nvidia’s stock, thanks to “sticky” funds such as pensions and 401(k) accounts continuously absorbing market supply. Hougan predicts that in 2026, Bitcoin will have reduced correlation with traditional stock markets and will benefit from falling interest rates, increased regulatory clarity, and quantitative easing policies.

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

BTC-1,46%

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