The fourth quarter of 2025 showed signs consistent with a potential bottom in the crypto bear market, according to a new report from crypto asset manager Bitwise. Chief investment officer Matt Hougan said markets delivered mixed signals, with prices declining even as several underlying fundamentals strengthened.
Hougan compared the period to early 2023, when crypto prices struggled in the aftermath of the FTX collapse despite improving onchain and business metrics. He said similar divergences between sentiment and fundamentals have historically appeared near cyclical lows, though he emphasized that outcomes remain uncertain.
Bitwise highlighted several data points from Q4, including record transaction activity on Ethereum and layer-2 networks, continued revenue growth among crypto-native firms, and stablecoin usage reaching new highs. The report also noted sustained adoption in decentralized finance, with decentralized exchanges processing volumes comparable to centralized platforms. Analysts across the market remain divided on the outlook for 2026, reflecting ongoing macroeconomic and policy uncertainty.
