Bitcoin’s price has fallen nearly 20% this year, and is currently trading 40% below its record high of over $126,000 seen in October.In a post on X, Michael Burry shared a chart comparing the current crypto market slump to the 2022 crypto winter, hinting that the four-year cycle remains intact.According to Bitwise CIO Matt Hougan, the market entered a full crypto winter in January, despite earlier strength in Bitcoin.Galaxy Digital CEO Mike Novogratz echoes their sentiment, stating that Bitcoin appears closer to a bottom than the start of a new downturn during the company’s fourth quarter (Q4) earnings call.
Bitcoin’s (BTC) price has fallen nearly 20% so far this year, sparking fears that the crypto bear market is here to stay. However, “The Big Short” investor Michael Burry, Galaxy CEO Mike Novagratz, and Bitwise CIO Matt Hougan think the worst of the “crypto winter” might be over.
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In a post on X, Burry charted a comparison between the crypto winter of 2022 and the current slump in Bitcoin’s price, with a cryptic “BTC patterns” message, signaling that the four-year cycle may still be intact despite claims to the contrary.
Burry’s comments follow his forecast that digital asset treasury (DAT) companies like Strategy (MSTR) could enter a “death spiral” if Bitcoin’s price falls another 10%. He added that crypto miners could face bankruptcy if BTC dips below $50,000.
When Did The Crypto Winter Begin?
According to Hougan, the crypto market entered a “full-blown” winter in January, even though it had been in the making for a while. He said that Bitcoin’s price only reached a record high in October last year because ETF approvals pre-empted the cycle, and traders misread the market because Bitcoin didn’t collapse as altcoins did.
“Once you accept that we’re in crypto winter, everything makes sense.”
– Matt Hougan, Bitwise
“This is peak end-of-winter behavior,” stated Hougan in a “The Wolf of All Streets” podcast episode with Scott Melker, echoing Burry’s take on the current state of the crypto market. Novogratz also said that Bitcoin’s bottom is near on Tuesday during the company’s fourth quarter (Q4) earnings call, comparing it to porn. “You’ll know it when you see it,” he told shareholders.
When Will The Crypto Winter End?
Alternative.me’s Fear & Greed Index stuck at ‘Extreme Fear’, traders rage-tweeting on X, leverage being flushed, and people taking their capital to other parts of the market are all signals that the crypto winter might be over, according to Hougan. “Winters die in exhaustion,” he said. “There’s no news that ever matters in a bear market.”
Bitcoin’s price continued to extend its drop on Wednesday night, falling 7.4% in the last 24 hours to around $70,500. On Stocktwits, retail sentiment around the apex cryptocurrency dropped lower within the ‘extremely bearish’ territory as chatter remained at ‘extremely high’ levels.
Read also: Michael Burry Flags Risk Of ‘Death Spiral’ For MSTR, Miners If Bitcoin’s Price Keeps Falling: Report
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