13 hour ago
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BEARISH 📉 : Bitwise CIO warns crypto market in full-scale winter mode
Bitwise Analysis on Current Crypto Market
- Matt Hougan, Bitwise CIO, reports that the crypto market has been in a bear phase since January 2025, contrary to optimism from institutional adoption and regulatory progress.
- He compares the current situation to past downturns and highlights excessive leverage and profit-taking by long-time holders as key factors.
- Positive developments like institutional involvement and improving regulation are often ignored during deep bear markets.
- The Crypto Fear and Greed Index shows high levels of fear, indicating negative sentiment despite supportive actions from influential entities like the Federal Reserve.
- Historically, crypto winters last about 13 months; however, exceptional institutional inflows have masked some underlying weaknesses this time.
- ETFs and Digital Asset Treasuries provided significant support, buying over 744,000 BTC, which prevented a potential 60% price drop.
- Potential recovery catalysts include global economic growth, progress on the CLARITY Act, sovereign Bitcoin adoption, or simply time.
