📉❄️ As Bitcoin (BTC) and the wider crypto market continue to fall sharply, discussions about a possible “crypto winter” are heating up. According to Bitwise’s Chief Investment Officer, Matt Hougan, this downturn goes far beyond a normal correction.
💬 Hougan believes the market isn’t just going through a temporary dip — it’s facing a deep and prolonged bear phase, similar to past crypto winters.
📊 In his analysis, he compared the current situation to what happened in 2018 and 2022, when prices kept dropping even while positive news, like stronger adoption and better regulations, was emerging.
📝 In a recent message to investors, Hougan explained that this crypto winter likely began in January of last year and is now approaching its later stages, rather than just starting.
⚠️ “What we’re seeing right now isn’t a small pullback,” he said. “It’s a classic bear market, very much like the cycles in 2018 and 2022.”
📉 High leverage in the market, combined with early investors taking profits, has weakened price reactions — meaning good news often fails to boost prices.
😨 Even with the possibility of a Bitcoin-friendly FED leadership, fear remains dominant in the market. According to Hougan, this is typical behavior during strong bearish phases.
📉 Since its peak last October, Bitcoin has dropped around 39%, while Ethereum has fallen by roughly 53%. Many altcoins have suffered even steeper losses.
🔍 He also pointed out that although Bitcoin reached new highs last year, the downward trend had already started months earlier — but many investors didn’t notice it in time.
🏦 “Institutional money helped hide the market’s real fragility,” Hougan noted. “Without ETFs and corporate treasury buying, Bitcoin could have fallen by as much as 60%.”
🌅 Despite the challenges, Hougan remains cautiously optimistic. He believes the market is now closer to a slow recovery than to another major crash. #BTC #bitcoin
