Matt Hougan Speaks Positively About Bitcoin and Altcoins: “The Bear Market May End Sooner Than Expected”

The ongoing “crypto winter” in the cryptocurrency markets and the future of Bitcoin have once again become a topic of discussion thanks to a recent podcast episode featuring Matt Hougan, Chief Investment Officer (CIO) of Bitwise.

Hougan predicts that the divergence between institutional and individual investors is changing the market structure and that the bear market may end sooner than expected.

Matt Hougan, in his statements on the Blockspace podcast, assessed the current state of the market and the scenarios expected for the coming period. According to Hougan, despite the sharp declines that have continued since January 2025, there is light at the end of the tunnel.

Hougan stated that the market is in a “bottom-up” phase, indicating that the crypto winter is not yet completely over. He specifically mentioned the shock declines at the beginning of 2025 as a disruptive event, but predicted that this cycle could end in the second quarter or summer of this year.

One of the most striking points in the broadcast was the difference in the behavior of institutional and individual investors. Hougan stated that for individual investors, winter began in January 2025, while institutional investors joined the process in October. It was noted that with the entry of institutional investors, the volatility rate in Bitcoin decreased compared to the past (from 80% drops to 50-60% pullbacks).

Hougan, who also discussed Bitcoin’s “Digital Gold” narrative, said that the recent price increases in gold were due more to physical purchases made by central banks (especially after the Russia-Ukraine war) to protect their own assets, rather than fears of “currency devaluation.”

Hougan also spoke about Kevin Warsh, Trump’s nominee for Fed Chairman, arguing that the market initially reacted negatively but that Warsh might pursue a more “dovish” policy than expected. According to Hougan, Warsh lowering interest rates more aggressively than anticipated could be a “bull catalyst” for the crypto market.

*This is not investment advice.