Bitcoin (BTC) dropped to $73,150 on Tuesday according to CoinMarketCap data as a broader stock market selloff intensified pressure across digital assets.
Bitwise Chief Investment Officer Matt Hougan said the market has been in "crypto winter" since January 2025.
The decline accelerated as technology stocks and private equity posted sharp losses. Bitcoin traded near its weekend low of $74,600 while Ethereum (ETH) fell to $2,120 and Solana (SOL) dropped below $97.
BlackRock TCP Capital's Friday filing revealing a 19% asset value markdown contributed to risk-off sentiment across markets.
What Happened
Crypto-related stocks mirrored the digital asset decline Tuesday. Galaxy fell 18% following its earnings while Strategy, Coinbase, Circle and Bullish declined 5-7% during the session.
Hougan rejected characterizing the downturn as a correction. "This is not a 'bull market correction' or 'a dip,'" he wrote. "It is a full-bore, 2022-like crypto winter."
Artificial intelligence stocks, software names and private equity companies posted sizable losses. The selloff suggested tighter liquidity conditions and economic concerns beyond the crypto sector.
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Why It Matters
Bitwise calculated that institutional vehicles absorbed more than 740,000 bitcoin during 2025. That buying provided price support that masked a 60%+ decline in tokens without exchange-traded fund or treasury demand.
Hougan placed the bear market start at January 2025 rather than October's peak. Crypto winters typically last 13 months, which would place a potential bottom within weeks if the January 2025 timeline holds.
The Fear and Greed Index remained in extreme fear territory. Hougan noted crypto winters end in exhaustion rather than optimism as sellers deplete positions.
Bitcoin fell 44% from its October high near $125,000. The total cryptocurrency market capitalization dropped below $3 trillion from over $4 trillion in autumn.
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