A New Crypto Winter Is Here, and Even the Biggest Bulls Are Worried
A severe downturn has gripped the cryptocurrency market, marking the arrival of what industry insiders are calling a new “crypto winter.” Bitcoin, the world’s largest digital asset, has plummeted approximately 50% from its all-time high of roughly $126,000 reached in October 2025. By early February 2026, the cryptocurrency was trading near the $60,000 mark, erasing gains that had been steadily built over the previous year.
This latest crash represents Bitcoin’s worst weekly performance since the collapse of the FTX exchange years prior. However, what distinguishes this selloff from previous market routs is a pervading sense of confusion among the industry’s most vocal supporters. Unlike past “winters” precipitated by clear catastrophes—such as the implosion of major exchanges or systemic frauds—this decline lacks a single, obvious catalyst. This ambiguity has rattled even the “permabulls,” the market’s long-term optimists who typically view volatility as a buying opportunity.
Prominent figures in the crypto space, often referred to by nicknames such as “Pomp,” “Novo,” and “Mooch,” have reportedly been left searching for answers regarding the specific trigger of the crash. The absence of a “smoking gun” has created an atmosphere of uncertainty that is arguably more unsettling than a decline with a known cause. While no key companies have collapsed or faced new, crisis-level allegations in this immediate cycle, the sheer speed of the selloff suggests a significant shift in market sentiment.
The broader cryptocurrency market has suffered alongside Bitcoin. Data indicates that the global crypto market has shed approximately $2 trillion in value since the peak in early October 2025. Ether, the second-largest cryptocurrency, has also faced steep losses, dropping more than 30% since the start of the year. The downturn has effectively wiped out the “Trump trade”—the surge in asset prices that accompanied the political and economic speculations surrounding the former president’s activities and election cycle.
Despite the gloom, some strategists maintain that the market’s fundamental structure remains intact. Jasper De Maere, a strategist at the crypto trading firm Wintermute, noted that the industry’s infrastructure is stronger than in previous years and that stablecoin adoption continues to grow. He argued that institutional interest has not evaporated but has simply been sidelined, waiting for a clearer direction. Nevertheless, with liquidity remaining thin and the primary cause of the crash still a topic of debate, the market faces a precarious path forward as it attempts to find a floor.
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