Crypto Winter: Is Spring Finally Arriving? Or Are We Just Wishful Thinking?

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So, the crypto market has been in a deep freeze since early 2025, like an icicle hanging off your eavestrough that just won’t budge. But hold onto your hats, folks! It looks like the thaw might be on the way-kind of like when you realize your ex has finally stopped texting you at 3 AM.

Bitwise Says Crypto Winter is Waving Goodbye, Get Ready for the Next Bitcoin Party!

Matt Hougan, the chief investment officer at Bitwise Asset Management (a fancy title that sounds like he should be wearing a monocle), took to social media platform X on February 3, 2026, to drop some knowledge bombs. He declared that the crypto market entered this prolonged winter back in early 2025. And guess what? We might be closer to finding our summer beach bodies than we think!

In his post, Hougan said:

“We have been in a crypto winter since January 2025. Chances are, we’re closer to the end than the beginning.”

He went on to elaborate on how this isn’t just a little dip in the road-nope, it’s more like a full-on, Leonardo DiCaprio-in-The-Revenant-style winter. You know, the kind where you’re fighting off bears and freezing your butt off just to survive. He pointed out that this downturn was caused by everything from excess leverage to those OGs cashing out like it’s Black Friday!

Hougan compared today’s gloomy outlook to past crypto catastrophes in 2018 and 2022 when even the most optimistic headlines couldn’t lift prices off the bathroom floor. He noted that falling prices, extreme fear, and the collective fatigue of investors feel like the defining features of late-stage crypto winters. Rallies fueled by hiring trends or big banks usually show up well after the bottom has already formed-like the friend who says they’ll be there “in 5 minutes” but shows up an hour later.

Later in the post, Hougan explained how institutional capital flows were like a bad magician distracting everyone from the reality of the market. He shared that assets in the Bitwise 10 Large Cap Crypto Index didn’t all get hit equally. Some tokens with ETF or corporate treasury access fell less than those without. Kind of like how the popular kids don’t seem to get detention as much, right?

He highlighted the large-scale bitcoin accumulation by ETFs and corporate treasuries as a stabilizing force-much like a blanket fort during a thunderstorm. Plus, he mentioned XRP’s legal clarity with the SEC (yay for not being tied up in legal jargon!). Despite the ongoing frosty conditions, he remains optimistic about the long-term forecast, concluding:

“I think we’re going to come roaring back sooner rather than later. Heck, it’s been winter since January 2025. Spring is surely coming soon.”

Frequently Asked Questions ⏰

  • When did Matt Hougan say the crypto winter began?
    He said the crypto market entered a sustained winter in January 2025, which sounds about as fun as waiting for paint to dry.
  • Why does Hougan believe this is a true crypto winter?
    He cited excess leverage, profit-taking by OGs, falling prices, and extreme investor fatigue. Basically, it’s a perfect storm of bad vibes.
  • How did institutions affect crypto prices in 2025?
    Institutional ETFs and treasury buying acted like a life raft while retail markets were sinking faster than a lead balloon.
  • What signals suggest the crypto winter may be ending?
    Hougan pointed to late-stage fear, exhaustion, and historical patterns that precede recoveries-basically, signs that say “Hang in there, buddy!”

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2026-02-06 06:03