Bitwise CIO says ‘full-blown crypto winter’ masked by institutional flows now nearer the end than the beginning
Bitwise CIO Matt Hougan asserts the current crypto downturn is a true winter, nearing its end due to institutional support masking deeper weakness.Summary
Bitwise Chief Investment Officer Matt Hougan argues that the prolonged crypto market downturn since early 2025 constitutes a "full-blown crypto winter," comparable to 2018 and 2022, where bearish sentiment overwhelms positive news.
Hougan notes that while Bitcoin is down about 39% from its October 2025 peak, underlying market weakness began around January 2025 but was obscured by strong institutional flows into ETFs and treasury vehicles. This institutional demand, which purchased over 744,000 BTC ($75 billion), cushioned the price drops for assets like Bitcoin, Ether, and XRP, preventing much steeper drawdowns for those supported by investment channels.
Despite the market malaise, Hougan believes the crypto landscape is making structural progress in areas like regulation and adoption. Drawing parallels with past cycles where bottoms were marked by despair, he concludes that the market is now closer to recovery than further decline, citing the duration of the winter and potential catalysts like the Clarity Act as reasons for optimism.
(Source：The Block)