Bitcoin Could Be Near the End of Crypto Winter, Bitwise CIO Says

Highlights:

• Matt Hougan says Bitcoin may be nearing a bear market bottom as negative news has less impact.
• Bitcoin ETFs are gaining appeal as regulated custody and investor protections attract more mainstream and institutional investors.
• Hougan expects wealth management platforms to become major Bitcoin buyers as advisers consider 2% to 4% allocations.

Bitcoin (BTC) may be approaching the bottom of the current crypto winter as the asset shows growing resistance to negative market news, according to Bitwise Chief Investment Officer Matt Hougan. He also expects regulated Bitcoin Exchange-Traded Funds (ETFs) and large wealth management platforms to play a bigger role in the market.

Hougan discussed the outlook in an August 11 interview on Bloomberg Crypto. He said Bitcoin’s recent behavior could signal a change in market sentiment. The interview also focused on Bitcoin security, self-custody, spot Bitcoin ETFs, and growing institutional demand.

The discussion comes as investors continue to weigh different ways to hold Bitcoin. Hougan believes regulated ETFs offer protections that appeal to mainstream investors, while cold storage remains an important option for people who prefer direct control of their assets.

LATEST: 📊 Bitwise CIO Matt Hougan predicts Bitcoin will end the year "significantly higher," citing positive ETF flows, OG buying, Treasury market intervention, and bad news no longer moving prices. pic.twitter.com/FOmlYcXncF

— CoinMarketCap (@CoinMarketCap) August 11, 2026

Bitcoin ETFs Gain Appeal as a Secure Investment Option

Hougan said the safest way to hold crypto continues to change as the industry develops. In his view, Bitcoin ETFs provide several safeguards through regulated structures and professional custody.

Hougan said:

“There are a number of good quality ways to store your Bitcoin. I do think ETFs and Bitcoin ETFs, we have an ETF, BITB, come with a lot of protections that investors find comforted. They’re regulated, qualified custodians. They have some element of insurance in place.”

However, Hougan did not dismiss Bitcoin self-custody. He said cold storage still gives holders an important way to remain outside the traditional financial system when they choose.

Bitwise CIO stated:

“I don’t think it challenges the idea of cold storage and self custody. You still have that option available to you, which is the really important thing. You can opt out of the system. This was a product failure. It’s not a failure of cold storage and self custody itself.” 

For many mainstream investors, however, Hougan expects regulated products to capture a growing share of Bitcoin holdings. Recent ETF flow data also shows continued demand, although daily activity remains mixed. U.S. spot Bitcoin ETFs recorded $7.8 million in net inflows on August 11, according to Farside Investors. That followed $144.6 million in net outflows on August 10.

Bitcoin Stops Reacting Strongly to Negative News

Hougan also pointed to Bitcoin’s recent reaction to negative news. He said Bitcoin has remained stable despite several bearish developments. According to him, an asset may be near the bottom of a bear market when bad news no longer causes a strong price drop. He added that Bitcoin is now showing less reaction to negative news while responding more positively to good developments. 

Based on that behavior, Hougan said Bitcoin “may be at the bottom of this crypto winter” and could see a strong finish to the year. Bitcoin was trading at around $63,702 at the time of writing, down about 0.3% on the day.

Wealth Management Platforms Could Become Bitcoin’s Next Buyers

Looking ahead, Hougan sees large wealth management platforms as an important source of future Bitcoin demand. Instead of expecting one major event to suddenly push prices higher, he believes institutional adoption could develop gradually. “I really think that’s the next marginal buyer of Bitcoin coming into the market, and that’s not a one minute catalyst. That’s something that takes place over time,” he added.

Hougan said financial advisers remain interested in crypto and are discussing allocations of around 2% to 4%. He expects the next Bitcoin bull market to be slower and more institutional than previous cycles, potentially creating a stronger long-term foundation for the asset.