Matt Hougan predicts the end of the crypto winter by 2026 due to institutional funding.Matt Hougan predicts the end of the crypto winter by 2026 due to institutional funding.

Bitwise CIO Predicts Crypto Winter’s End by Early 2026

2 min read
Crypto Winter Recovery Prediction by Matt Hougan
Key Takeaways:
  • Main event, leadership changes, market impact, financial shifts, or expert insights.
  • Hougan predicts 2026 recovery.
  • Institutional funds hold crypto declines.

The crypto winter that started in January 2025 is nearing its end, not the beginning, according to Matt Hougan, CIO at Bitwise Asset Management. Despite major declines, institutional funding through ETFs and DAT has mitigated market falls.

Matt Hougan, Bitwise’s CIO, states that the current crypto winter, ongoing since January 2025, could conclude by early 2026 due to continued institutional funding in the crypto sector.

Institutional backing is stabilizing the crypto market, suggesting broader recovery potential. Market reactions have been mixed, with investor confidence slowly improving.

Factors Influencing Recovery

Matt Hougan of Bitwise Asset Management attributed the masked effects of a crypto winter to significant institutional investment. Hougan believes recovery is near due to ongoing funding into ETFs and DATs. The bitcoin price would be much lower without these supports. Despite the retail market downturn, institutional adoption has cushioned the decline. Institutional funds acquiring BTC, such as MicroStrategy and MetaPlanet, have limited asset devaluation, reflecting strong investment confidence.

Market Impact

The impact on cryptocurrency prices has been mixed; BTC and ETH declines are moderate, while altcoins without institutional funding see sharper declines. The institutional demand partly replaced prior market drivers, bringing some stability. Bitwise’s analysis indicates that institutional investors’ growing interest in crypto assets has mitigated potential declines. In addition, the potential 2026 recovery trajectory suggests a turning point based on previous bear cycles. Institutional interest and improved regulatory environment could bolster market recovery. Looking at past trends, crypto winters generally last around 13 months, implying an end by 2026. Institutional capital remains crucial for market resilience. The potential stabilization of the crypto market is underscored by the continued influx of institutional capital. As regulation and adoption progress positively, the broader implications suggest renewed investor interest and optimism in the approaching year.
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