In the ever-evolving world of cryptocurrency, there is a constant debate about whether or not the market follows a predictable four-year cycle. Some experts argue that this cycle is a natural occurrence in the market, while others believe that it is simply a coincidence. However, Matt Hougan, the Chief Investment Officer at Bitwise Asset Management, has a different perspective on this matter.

Hougan recently stated that he believes the crypto market will not completely break away from the four-year cycle, but it will experience shorter and shallower pullbacks in the future. This statement comes as a response to the recent market volatility, which has caused many investors to question the stability of the crypto market.

But why does Hougan believe that the four-year cycle will still have an impact on the market? According to him, it is because of the human psychology and behavior that drives the market. He explains that the fear of missing out (FOMO) and the fear of losing out (FOMO) are powerful emotions that influence investors’ decisions. These emotions, combined with the limited supply of cryptocurrencies, create a cyclical pattern in the market.

However, Hougan also believes that the market will become more efficient over time, and as a result, the pullbacks will become shorter and shallower. This means that the market will recover faster from any downturns, and the overall volatility will decrease. This is good news for investors who have been hesitant to enter the market due to its unpredictable nature.

In conclusion, while the four-year cycle may still have an impact on the crypto market, it is likely to become less significant in the future. As the market matures and becomes more efficient, investors can expect shorter and shallower pullbacks, making it a more stable and attractive investment option. So, if you have been considering entering the world of cryptocurrency, now may be the perfect time to do so.