- Matt Hougan says crypto winter started in Jan 2025.
- ETF and DAT inflows masked the broader downturn.
- He believes the worst is behind us now.
A Hidden Crypto Winter in Plain Sight
Matt Hougan, Chief Investment Officer at Bitwise, has revealed that the ongoing downturn in the crypto market—commonly referred to as a crypto winter—actually began in January 2025. While this may come as a surprise to many, Hougan explains that strong inflows into ETFs and Digital Asset Trusts (DATs) have obscured the true scope of the decline.
According to Hougan, the positive sentiment around regulatory approval for spot ETFs and institutional investment gave the impression that the market was in recovery. But beneath that surface optimism, crypto prices and volumes have been struggling.
“Closer to the End Than the Beginning”
Despite acknowledging the downturn, Hougan struck an optimistic tone: “We’re closer to the end than the beginning.” This statement suggests that while the market has faced challenges for over a year, the major shakeouts may be behind us.
He implies that macroeconomic uncertainty, tightening liquidity, and subdued retail activity defined the earlier part of this crypto winter. However, improving conditions—such as stabilization in Bitcoin prices, resilient DeFi metrics, and increasing institutional confidence—indicate that the tide might be turning.
ETF Hype and Market Reality
The approval of spot Bitcoin and Ethereum ETFs brought significant attention and billions in inflows, but those headlines may have masked a broader cooling in retail participation and altcoin activity. Hougan’s comments serve as a reality check: the market’s surface doesn’t always reflect its underlying health.
As the crypto space prepares for potential rate cuts, upcoming halving events, and more regulatory clarity, this “stealth winter” could quietly give way to the next growth cycle.
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