Bitcoin Surges Past $85,000 as Analysts Declare the End of Crypto Winter
Bitcoin climbed past $85,000 in a strong market rally, gaining 6.5% in 24 hours. Bitwise CIO Matt Hougan declared the crypto winter over as capital rotates back from AI stocks.
Bitcoin continues its impressive rally, climbing above the $85,000 threshold. Trading at $85,690, the cryptocurrency registered a 6.5% gain over a 24-hour period according to CoinMarketCap data. Earlier in the day, the coin peaked at $85,229, marking its highest valuation since late January.
The End of the Crypto Winter?
Market participants are closely evaluating whether the recent digital asset downturn—dubbed the "crypto winter" following an all-time high of over $126,000 in October 2025—has officially concluded. Matt Hougan, Chief Investment Officer at Bitwise, expressed strong optimism during an appearance on CNBC's "Squawk Box Europe."
"I definitely think it’s over, it’s crypto spring, the crocuses are blooming," Hougan stated. "I think this is going to be the strongest, longest bull market in crypto history."
Although Bitcoin remains down year-to-date, it has surged by over 7% in the past five days and nearly 35% over the trailing three months, though it still trades below historical peaks. Hougan noted that underlying fundamentals have vastly improved despite the cyclical price correction, pointing to increased blockchain transaction volumes and deeper corporate involvement from financial giants like BlackRock.
Regulatory Landscape and Market Shifts
Meanwhile, crypto-related equities in the United States showed strong momentum, with Coinbase advancing 5.8% and Strategy climbing 7.9%. These gains occurred despite the U.S. Senate blocking the progression of the Clarity Act last week, a bill designed to establish a definitive regulatory framework between the SEC and the CFTC.
However, Hougan suggested that the legislative setback might paradoxically benefit the market. He emphasized that the current regulatory bodies represent the most crypto-friendly administration in U.S. history, meaning existing oversight could prove more accommodating than strict statutory rules.
Furthermore, institutional capital appears to be rotating back into digital assets. According to Bitwise, the previous frenzy surrounding artificial intelligence stocks had absorbed market liquidity, but as the AI momentum moderates, capital is actively flowing back into the cryptocurrency ecosystem.
