Bitwise CIO: Crypto Winter May Be Nearing Its End, Recovery Window Is Opening

BlockBeats News, February 3rd, Bitwise Chief Investment Officer Matt Hougan stated that since early 2025, the crypto market has been in a long-term downtrend, and the current environment should be seen as a full-blown "Leonardo DiCaprio-style crypto winter in The Revenant," rather than a temporary technical correction.

Hougan stated that historically, crypto winters have typically lasted about 13 months from peak to trough, and this cycle may have started earlier than most investors realize. Although Bitcoin peaked in October 2025, he believes the market's underlying weakness was already evident around January 2025, only masked by strong inflows into exchange-traded funds (ETFs) and digital asset treasuries.

Despite the specific timing remaining uncertain, Hougan believes the market may be closer to recovery than to further downside. He pointed out that this winter has already lasted over a year, coupled with strong economic growth, positive surprises from the "Crypto Market Structure Act" (CLARITY Act), and signs of Bitcoin adoption at the sovereign level, all of which could serve as positive catalysts for market recovery. "The darkest hour is just before dawn," he said.