#WhenWillBTCRebound? Bitwise CIO Matt Hougan stated that the declines in the Bitcoin and cryptocurrency markets are not just corrections but a severe crypto winter.

The consecutive sharp declines in Bitcoin (BTC) and the crypto market have increased discussions of a crypto winter, prompting bold statements from Bitwise Chief Investment Officer (CIO) Matt Hougan.

Matt Hougan said that the market declines are not merely corrections but a harsh 'crypto winter.'

Bitwise CIO Matt Hougan assessed that the current cryptocurrency market is not experiencing a short-term correction but is indeed in a full-blown crypto winter.

According to The Block, Hougan noted that despite positive news such as increased adoption of cryptocurrencies or regulatory improvements, the overall market decline continues, showing a pattern very similar to the crypto winters of 2018 and 2022.

In a recent note to investors, Hougan stated that the crypto market has entered a full crypto winter since January of last year, but it is now closer to the final stage rather than the beginning.

“What’s happening in the current market is not a simple pullback; it’s a bear market similar to those in 2018 and 2022, the kind you find in textbooks.

Excessive leverage combined with early investors taking profits means that even positive news does not lead to price surges.

Additionally, even if the Fed’s new chair candidate adopts a friendly approach toward Bitcoin, market sentiment remains in extreme fear. Because we are in the middle of a bear market.”

Hougan pointed out that Bitcoin has fallen about 39% since its peak last October, while Ethereum lost approximately 53% of its value during the same period. Many altcoins have experienced even sharper declines.

At this point, although Bitcoin reached a new high last October, Hougan noted that the downtrend had already started in January, but many investors did not sufficiently recognize this decline trend within the cycle.

Institutional inflows masked the market’s true weakness. Without ETFs and institutional treasury purchases, Bitcoin’s decline could have reached 60%.

Finally, Hougan argued that while it is difficult to predict the exact timing of a recovery, the market is now closer to a gradual rebound rather than further declines.

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