Crypto winter since Jan 2025, masked by ETF demand, now nearing late-stage exhaustion.
Summary
- wise CIO Matt Hougan labels current market a full crypto winter starting January 2025, not a standard correction.
- Institutional buyers, including ETFs and digital asset treasuries, snapped up over 744,000 BTC, cushioning prices yet failing to reverse declining sentiment.
- Hougan points to history, macro growth, CLARITY Act progress, and potential sovereign Bitcoin moves as catalysts for eventual recovery from late-stage winter conditions.
Bitwise Chief Investment Officer Matt Hougan has characterized the current cryptocurrency market conditions as a full-scale bear market that began in January 2025, according to a recent report released by the executive.
Hougan stated in the analysis that the downturn represents more than a routine pullback, describing the environment as a crypto winter comparable to previous downturns experienced in 2018 and 2022. The executive attributed the decline to excessive leverage accumulated during the prior cycle and substantial profit-taking by long-term cryptocurrency holders.