đâïž As Bitcoin (BTC) and the wider crypto market continue to fall sharply, discussions about a possible âcrypto winterâ are heating up. According to Bitwiseâs Chief Investment Officer, Matt Hougan, this downturn goes far beyond a normal correction.
đŹ Hougan believes the market isnât just going through a temporary dip â itâs facing a deep and prolonged bear phase, similar to past crypto winters.
đ 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.
đ 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.
â ïž âWhat weâre seeing right now isnât a small pullback,â he said. âItâs a classic bear market, very much like the cycles in 2018 and 2022.â
đ High leverage in the market, combined with early investors taking profits, has weakened price reactions â meaning good news often fails to boost prices.
đš 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.
đ Since its peak last October, Bitcoin has dropped around 39%, while Ethereum has fallen by roughly 53%. Many altcoins have suffered even steeper losses.
đ He also pointed out that although Bitcoin reached new highs last year, the downward trend had already started months earlier â but many investors didnât notice it in time.
đŠ âInstitutional money helped hide the marketâs real fragility,â Hougan noted. âWithout ETFs and corporate treasury buying, Bitcoin could have fallen by as much as 60%.â
đ 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
