Bitcoin Tops $85,000, Crypto Winter Over? Bitwise Says New Bull Market May Begin

TradingKey - On Monday, Bitcoin (BTCUSD) extended its recent upward momentum, breaking above $85,000 intraday and peaking at $85,420, reaching a new high since late January. Meanwhile, cryptocurrency-related stocks such as MicroStrategy (MSTR) and Coinbase (COIN) also moved higher in tandem.

Source: TradingView

After months of adjustment, Bitcoin has recently staged a clear rebound, rising more than 11% over the past week. Although its overall performance year-to-date remains in negative territory and it is still some distance from its all-time high of over $126,000 set in October 2025, the recent price recovery has reignited market discussion on whether the "crypto winter" has come to an end.

In an interview with CNBC on Monday, Matt Hougan, Chief Investment Officer at Bitwise, stated that he believes the crypto market's downturn is over and the industry is entering a new growth cycle. He anticipates that if the current trend continues, this rally could become one of the longest and strongest bull markets in cryptocurrency history.

Hougan believes that it is not just price action driving the market's renewed strength, but more importantly, the improving fundamentals of the crypto industry. He pointed out that transaction activity on blockchains continues to increase, while major financial institutions like BlackRock are steadily expanding their footprint in digital assets, indicating that cryptocurrencies are gaining broader participation from traditional capital and institutional investors.

In his view, while the market previously experienced price declines, industry fundamentals did not deteriorate in lockstep, but instead continued to develop. Therefore, if fundamentals continue to improve, asset prices could eventually align gradually with fundamentals. He expects Bitcoin could rise further before the end of this year, potentially even approaching its previous all-time highs.

The rally also comes against the backdrop of shifting U.S. crypto regulation. Although the U.S. Senate failed last week to advance the CLARITY Act to the next stage, Hougan believes this outcome is not necessarily a direct negative for the market. The bill was originally intended to further clarify the regulatory scope for digital assets and divide responsibilities between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

Hougan noted that the current U.S. regulatory environment is already relatively favorable to the crypto industry. Even if the CLARITY Act makes no immediate progress, the SEC and CFTC can still move forward with regulatory work based on existing rules. In his view, the market might even gain a more favorable policy environment as a result.