Bitcoin (CRYPTO: BTC) may be approaching the end of its current "crypto winter," according to Matt Hougan, chief investment officer at Bitwise Asset Management, who says the market is likely closer to a recovery phase than another downturn.

Cycle Still Intact

In an Apr. 10 interview with Cointelegraph, Hougan said the broader four-year crypto cycle remains intact and could be entering a bottoming phase around mid-April.

He pointed to seasonal tax-related selling pressure in the United States as a possible factor contributing to recent weakness.

Hougan argued that while risks remain, including regulatory uncertainty around legislation such as the Clarity Act, macroeconomic shocks, and geopolitical tensions—the market is increasingly driven by crypto-native forces such as liquidity conditions and cycle psychology rather than external events.

According to Hougan, institutional investors are not questioning Bitcoin's legitimacy but are instead focused on timing their entry within the cycle. He added that emerging concerns like quantum computing risk have only marginally slowed adoption.

BTC Reacts To Liquidity, Not Specific Events

Hougan emphasized that Bitcoin tends to respond more to liquidity and overall risk sentiment than to specific geopolitical developments, unless those events materially impact monetary conditions.

Hougan expressed optimism about long-term growth in stablecoins, noting that companies like Circle could be major beneficiaries of increased adoption.

He suggested that early market leaders often retain dominance even as traditional financial institutions enter the sector.

Overall, Hougan's view is cautiously optimistic. Rather than a sharp V-shaped rebound, he expects a gradual stabilization and recovery, with institutional capital likely leading the next phase of the crypto market cycle.

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