Matt Hougan: The decline in the cryptocurrency market is not merely a brief correction., 2026/02/04 08:00:10

The Chief Investment Officer of the cryptocurrency asset management firm Bitwise, Matt Hougan, stated that the current downturn in the crypto market is not merely a short-term price correction but rather a full-fledged crypto winter.

According to Hougan, the current circumstances are reminiscent of the crypto winters of 2018 and 2022, during which the overall decline persisted despite positive developments—such as the increased adoption of cryptocurrencies and improved attitudes from the authorities of major countries.

“What we are witnessing now is a classic bear market. Excessive leverage combined with the tendency of early investors to take profits is only reinforcing the negative trend,” the executive explained.

The downward trend began in the early days of January, but many investors failed to pay adequate attention to it, lamented the Bitwise investment director.

“The influx of capital from institutional investors has masked the true weakness of the market. Without support from exchange-traded funds and purchases of U.S. Treasury bonds, Bitcoin’s decline could have reached 60%,” Hougan asserted.

In his view, predicting the exact timeline for the recovery of the crypto market is challenging, but it is likely moving slowly towards a gradual rebound rather than a more profound decline. Potential catalysts for growth could include economic expansion in the U.S. and the possibility of Bitcoin being recognized by certain nations, Hougan added.

Previously, analysts from the hedge fund Pantera Capital indicated that the crypto market has entered a “cooling phase,” characterized by a reduction in the use of leverage and significant corrections in the prices of major cryptocurrencies.