As Bitcoin briefly dipped below $100,000 overnight between November 4 and 5, fears of an impending crypto winter began circulating among investors.
To assess whether the market is truly entering a deep freeze, BeInCrypto asked Ryan Li, lead analyst at Bitget Research, to share his perspective.
What Is a Crypto Winter?
The term crypto winter describes an extended period of declining prices and weakened activity across the digital asset market.
It’s a phase marked by fading speculative interest, shrinking trading volumes, and steep corrections — often by tens of percent from peak valuations.
Previous downturns, such as those in 2018 and 2022, led to widespread project shutdowns, layoffs across the blockchain industry, and the retreat of retail investors.
While many attribute these cycles to the market’s natural rhythm, some analysts believe that in 2025, Bitcoin’s trajectory is increasingly shaped by macroeconomic and geopolitical factors rather than pure cyclicality.
Analyst: “This Is a Pause, Not a Winter”
According to Ryan Li from Bitget Research, it’s too early to declare the beginning of a new crypto winter.
He describes the current phase as a healthy correction following an accelerated rally — driven primarily by temporary macroeconomic pressures such as the U.S. government shutdown, paused federal budget operations, and uncertainty surrounding the Federal Reserve’s next steps.
“Investors are taking a cautious stance, locking in profits and trimming exposure to high-risk assets,”
Li explained.
“However, the fundamental drivers — institutional demand, consistent inflows into spot ETFs, and growing infrastructure — remain intact. This looks more like a pause in a bull cycle than the start of a long decline.”
Monetary Policy Could Revive Momentum
Li also pointed to early signs of future recovery, suggesting that the Federal Reserve may continue its gradual monetary easing, boosting liquidity in both traditional and crypto markets.
Historically, temporary slowdowns in digital assets have been followed by strong rebounds as capital re-enters the market.
He believes the current correction could end with a traditional “Santa Claus rally” heading into late December.
“Once the U.S. shutdown ends and capital flows stabilize, Bitcoin may resume its upward trend — possibly even before the year’s end,”
Li added.
The ongoing correction does not signal the start of a new crypto winter, according to Bitget Research.
The downturn is driven by short-term macro factors — including the U.S. shutdown and policy uncertainty — rather than structural weakness.
Institutional demand, strong ETF inflows, and infrastructure growth continue to underpin the long-term bullish outlook.
As fiscal operations resume and monetary policy loosens, the crypto market could soon re-enter a growth phase — potentially setting the stage for a year-end rally.
