According to Bitwise CIO Matt Hougan, the crypto winter is real but nearing its end. Bitcoin has faced a four-month downturn, with prices dropping below $80,000. Hougan attributes the relative stability of Bitcoin to strong institutional support, particularly from spot Bitcoin ETFs approved in 2024 and purchases by public companies like MicroStrategy.

Institutional investors have been actively buying Bitcoin, offsetting the bearish sentiment. Hougan estimates that ETFs and digital asset treasuries have acquired over 744,000 BTC, worth approximately $75 billion. This has prevented a more severe collapse, with some tokens experiencing far steeper declines. The market is now looking towards a potential rebound.

Hougan believes that 2026 will defy historical patterns, predicting new all-time highs. He cites factors like diminishing halving impacts and falling interest rates. Additionally, increased institutional flow via spot Bitcoin ETFs and potential regulatory clarity, such as the CLARITY Act, could further fuel demand and drive prices upward for established tokens, including Bitcoin and Ethereum.

Binance's plan to convert its $1 billion SAFU into Bitcoin in February is a bullish indicator, providing a price floor. The anticipated impact of the CLARITY Act could also be a catalyst. Institutional interest and regulatory developments are set to play a key role in the future of the crypto market.