Crypto may be frozen, but analysts predict a quicker thaw this time, and bulls are willing to wait

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The entire crypto market has suffered some serious valuation declines starting in 2026, drawdowns that scared the larger crypto audience away – at the same time having bulls approach this episode like fashionistas treat the yearly, massive Christmas selloffs. Regardless of position, one question is on everyone’s mind: what started all this?

If you ask ten specialists, it’s likely that you end up with ten different justifications. From recent selloffs by profit-taking investors to the increasingly varied range of crypto-tied trading instruments, there’s no single reason driving the market – it’s a combination of factors. We’re not here to review them all, for doing so would reveal very little about where crypto is headed and how the broader market might behave, as there is rarely any consensus regarding Bitcoin price prediction data. Instead, we’re taking a closer look at how analysts and bulls are reading the current market.

The deep-pocketed has clearly cashed out profits 

Past winters had one or several highly specific – and easily understandable – reasons they occurred, causes that one could pinpoint easily. Take, for instance, when Bitcoin lost 22% over one single day in November 2022. The reason? The collapse of the FTX crypto exchange that triggered cascading liquidations and hurt audiences’ trust. But this time? As Galaxy CEO Mike Novogratz put it, “there’s no smoking gun”. Nothing points to the reason. Instead, a bunch of more innocent factors to look at, among which, according to the industry connoisseur, profit-taking plays a key role. Much of the downward pressure from the selloffs stems from investors ready to lock in profits – profits that are far from negligible. These are gains they amassed when BTC, ETH, XMR, PEP, XRP, and other cryptocurrencies surged during the frenzy following Trump’s 2024 election and his declaration to transform the U.S. into a crypto mecca. Bitcoin, for instance, gained approximately 80% since the elections up to October 2025. You don’t need to be a mathematician to realize that 1K invested around that time would’ve almost doubled by October.

This isn’t the first, nor the last selloff

Sudden, intense selloffs are anything but atypical when it comes to crypto. They’re actually so common that they were named after a recurring season – winters. Some investors and analysts, Novogratz and strategists at Wintermute included, believe the current crypto winter has just the needed reasons to thaw faster compared to other market downturns. Jefferies analyst Andrew Moss says this serious selloff should be seen as a normal market correction instead of a full-blown crypto winter, highlighting the natural continuity in participation seen from institutions and industry heavyweights. Price declines alone are insufficient to define a cryptocurrency winter in its proper sense. At the same time, Wintermute strategist Jasper De Maere highlights that institutional interest can rapidly return – strengthening the bullish case.

While Bitcoin is often dubbed as “digital gold”, it shouldn’t be seen as an asset that trades in the same manner. Crypto markets are rather risk-off assets and more aligned with the NASDAQ, as he suggests, and Bloomberg reports support this observation. The media hub reported earlier this year that Bitcoin’s price is more closely linked to that of tech stocks, with its correlation to the Nasdaq 100 at a two-year peak ahead of inflation data.  

Retail, slowly finding its way back to crypto again

Crypto winters understandably scare smaller-scale, retail investors away. But with this market downturn, something doesn’t add up the same. Recent data from Coinglass suggests retail participants are returning to the market, despite stalling whale activity. Spot BTC ETFs, however, have recorded considerable net outflows as of late.

Wall Street’s efforts to take advantage of crypto’s increasing prominence led to the rollout of multiple derivatives and exchange-traded funds associated with BTC, ETH, XRP, and more renowned coins. Some blame these developments for having stolen some of Bitcoin’s shine, since today’s sizeable availability to profit from the assets without actually holding them makes the main charm of some tokens – the fixed supply – less appealing. Bitcoin has always been capped at 21MN coins. But investors no longer need to invest in Bitcoin to leverage its potential as they can now bet on its price performances and gain exposure to it in new ways that were not initially part of the “scarce” digital currency narrative. It was “less supply”, not “more supply”. The appeal came from scarcity, not abundance.

More options for traders – less attention for crypto?

It’s not just that traders have more options today, it’s that the landscape has actually shifted in ways that can draw capital and attention away from crypto. During 2025 and into early 2026, markets worldwide saw broad rallies in traditional, more risk-off assets like equities, gold, silver, etc., with precious metals logging strong gains and outperforming multiple digital assets during periods when investors would prefer more stable investments. The resurgence in gold and silver, for instance, has led to sharp price progresses, as investors looked for safe-haven hedges, during macro uncertainties and confusion in crypto.

At the same time, equities – especially tech and AI-linked stocks – have remained strong options for capital allocation and managed to retract focus from crypto trading, even if for fleeting episodes. Some analysts point to the rise of narratives driven by utility and integration with traditional finance, shifting attention away from the speculative trading that – attention here – used to define crypto not too long ago.

Today, Bitcoin, Ethereum, and other established digital assets are increasingly seen as institutional-grade investments rather than speculative bets. Institutional demand in them has kept rising alongside the broader market, which helped them transition from mere high-risk investments into more mature and serious investment vehicles.

Keeping your cool during crypto letdowns.

It’s easy to feel anxious when the crypto market takes a hit, but keeping your mind clear is crucial. Start by revisiting your investment strategy: focus on your long-term goals instead of short-term price swings. Diversify your portfolio to reduce your exposure to risks and avoid making impulsive trades based on fear – what you think you lost is only lost on paper, unless you abandon your position. Consider setting stop-losses or automated alerts to manage risk without staying glued to price charts. And stay informed from reliable sources, avoiding hype-driven news.

Crypto remains volatile and unpredictable, things you need to remind yourself every time the market starts to overwhelm you.

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