It has been 4 months of ache. When Bitcoin broke $126,000 in early October, everybody thought the digital gold was able to fly as excessive as $150,000. For a short second, it appeared so, till October 10 occurred.
Since then, not solely have bears been urgent on, however they’re having a discipline day. The Bitcoin worth broke beneath $80,000 over the weekend, whereas most cryptos recorded double-digit losses.
Crypto Worry and Greed Chart
All time
1y
1m
1w
24h
Contemplating this sequence of occasions, the unrelenting bears, and 4 months of regular losses, it’s secure to say crypto is in a bear market. That is an remark that Matt Hougan, the Bitwise Chief Funding Officer (CIO), agrees with.
DISCOVER: 9+ Greatest Memecoin to Purchase in 2026
Bitwise Govt: The Crypto Winter is Right here, However Nearly Over
In a memo, the Bitwise govt mentioned the crypto market has been in a full-blown winter. That is regardless of the Bitcoin worth not absolutely displaying it. Over the months, Bitcoin held up much better than most tokens, slipping far lower than the brutal drops seen throughout the remainder of the market.
From the Worry and Greed Index, concern is all over the place, and lots of merchants, particularly novices, are confused. Even amid this sell-off, the Bitcoin worth is comparatively calm, holding regular above 2021 highs, and looking out prone to bounce strongly, reclaiming the $90,000 within the coming weeks.
The explanation Bitcoin is agency at spot charges, Hougan mentioned, is because of institutional help. Whereas outflows had been heavier than typical in January, the “large boys” have been shopping for Bitcoin-backed shares since spot Bitcoin ETFs had been permitted in early 2024. Moreover, MicroStrategy, MetaPlanet, and different public corporations have been “shopping for the dip,” including BTC to their steadiness sheets in January.
Metaplanet has acquired 1241 BTC for ~$126.7 million at ~$102,119 per bitcoin and has achieved BTC Yield of 170.0% YTD 2025. As of 5/12/2025, we maintain 6796 $BTC acquired for ~$608.2 million at ~$89,492 per bitcoin. $MTPLF pic.twitter.com/KXNWl5Hg0d
— Simon Gerovich (@gerovich) Might 12, 2025
Their confidence in shopping for BTC regardless of the bearish sentiment acted like a sponge, slowing down the bears. Hougan estimates ETFs and digital asset treasuries purchased greater than 744,000 BTC, price about $75Bn. With out their involvement, the Bitwise CIO thinks the coin would have simply collapsed beneath 2021 highs, fully reversing positive factors from late 2024.
The cut up exhibits up clearly. Ethereum, XRP, Bitcoin, and different cash with robust institutional entry fell roughly -20%. In the meantime, “bare” tokens, principally meme cash with excessive liquidity however with out institutional help, fell sharply, shedding upwards of -50% from early October 2030. You may see this sample in latest ETF outflows hitting crypto and the spike in institutional ETH outflows.
It stays to be seen whether or not Bitcoin and a few of the prime meme cash will get well. Within the eyes of Hougan, it seems that crypto costs are bottoming and property are nonetheless weathering the tail finish of the crypto winter. To help this upbeat outlook, Hougan famous that although crypto sentiment remains to be within the “excessive concern” zone, fundamentals are stronger than ever.
DISCOVER: Greatest Meme Coin ICOs to Spend money on 2026
Will The Bitcoin Worth Soften Faces In 2026?
Hougan is a Bitcoin and crypto bull, and this isn’t the primary time he has made bullish predictions. Earlier, he mentioned he strongly believes the traditional four-year crypto cycle, traditionally pushed by the Bitcoin halving, is successfully lifeless. Hougan argues that 2026 will defy the historic sample of a post-peak bear 12 months and as a substitute ship new all-time highs.
To again up this declare, the chief cites diminishing halving impacts and falling rates of interest, particularly all through 2025. Moreover, Hougan thinks huge institutional stream through spot Bitcoin ETFs and the entry of extra capital from Morgan Stanley will catalyze demand, changing outdated worth drivers. Within the first half of 2026, the Bitwise CIO expects the Bitcoin worth to be range-bound, carrying out retailers and flushing speculators earlier than exploding increased.
Morgan Stanley is hiring for dozens of crypto roles and opening the pipes on the identical time.
Grayscale Bitcoin Mini Belief ETF ($BTC) is now obtainable on Morgan Stanley’s platform, opening entry to greater than $7.4T in advisor AUM.
2026 goes to be explosive for crypto. pic.twitter.com/pXuCvpOkuq
— Frank Chaparro (@fintechfrank) January 27, 2026
Forward of this, Binance plans to transform its $1Bn stablecoin-dense SAFU into Bitcoin in February. Whereas inflows from Binance market orders might be “mud” in comparison with institutional demand through spot Bitcoin ETFs as soon as costs start ticking increased, the mega-exchange is offering a backstop for Bitcoin, which is inherently bullish.
Eyes are additionally on the CLARITY Act. If this piece of laws turns into regulation, it could be the starter gun for crypto costs, together with Ethereum and Solana, to tick increased now that establishments can have clearer pathways. With clear legal guidelines within the US following the GENIUS Act, tokenization will seemingly explode, and contemporary capital inflows could elevate established tokens, primarily Bitcoin.
DISCOVER:
Observe 99Bitcoins on X For the Newest Market Updates and Subscribe on YouTube For Each day Skilled Market Evaluation.
Why you may belief 99Bitcoins
Established in 2013, 99Bitcoin’s crew members have been crypto consultants since Bitcoin’s Early days.
90hr+
Weekly Analysis
100k+
Month-to-month readers
50+
Skilled contributors
2000+
Crypto Tasks Reviewed
Observe 99Bitcoins in your Google Information Feed
Get the newest updates, tendencies, and insights delivered straight to your fingertips. Subscribe now!
Subscribe now 
