Bitcoin’s slide below $100,000 reignites fears of crypto winter

Bitcoin’s fall below the $100,000 mark has reignited old fears of another crypto winter, as investors brace for what could be a prolonged downturn in digital currencies. The world’s largest cryptocurrency is now trading at its lowest level since June, leaving traders jittery and prompting talk of whether this marks the beginning of another deep freeze for the market.

Yet, despite the gloom, some industry insiders believe the worst may soon be over. Matt Hougan, chief investment officer at Bitwise, thinks the recent panic could actually be a sign that prices are nearing their bottom. Speaking on CNBC’s Crypto World on Tuesday, he described the current climate as “a tale of two markets” — retail traders drowning in despair, while institutional players remain quietly optimistic.

Institutional confidence still holding firm

According to Hougan, individual crypto investors have been caught in a wave of forced selling and liquidations, leaving retail sentiment at what he called “max desperation.” However, he noted that Wall Street’s growing involvement through bitcoin-linked exchange-traded funds (ETFs) has brought a stabilising force to the market.

“The institutional side is still bullish,” he said, pointing to the continued inflows into major ETFs such as iShares Bitcoin Trust (IBIT), Fidelity’s Wise Origin Bitcoin Fund (FBTC), and the Grayscale Bitcoin Trust (GBTC). While the pace of investment has slowed since midyear, Hougan added that financial advisors and large investors are still positioning themselves for a longer-term recovery.

Bitwise itself has benefited from that trend. Its recently launched Solana staking ETF (BSOL) attracted more than $400 million in its first week of trading before losing about 20 percent in the latest market pullback.

Hopes for a rebound before year-end

Despite the steep drop, optimism remains among high-profile crypto advocates. Last week, MicroStrategy’s CEO Michael Saylor predicted that bitcoin could surge to $150,000 by year-end — a forecast many have dismissed as unrealistic given the current selloff. Hougan, however, says such a rally is not impossible.

“I think bitcoin could end the year at new all-time highs, perhaps between $125,000 and $130,000,” he said, adding that sellers seem to be losing momentum while buyers are growing restless for a bargain. “If those forces align, we could easily see the market turn around.”

For now, the crypto world stands divided — retail traders nursing losses and institutions eyeing opportunity. Whether this moment turns into another long winter or the start of a new spring will depend, as always, on who blinks first.