Crypto Bear Market Predicted Through Q4 2025; Bitget and Bitwise Highlight AI Tokens, Regulation, and Institutional Adoption
Matt Hougan of Bitwise and Gracie Chen of Bitget both expect the current crypto bear market to persist, with Chen forecasting it may last until September or October 2025. While Bitcoin reached over $100,000 earlier, the market has since entered a correction. Both experts note increased volatility, including memecoin collapses, surging speculative tokens such as TRUMP and MELANIA, and major security breaches—specifically, a record $1.5 billion ETH hack at Bybit and manipulation cases for tokens like Jelly and OM—raising ongoing concerns about crypto security. Regulatory momentum is identified as a positive force, including pro-crypto government stances, lawsuit withdrawals, discussions about national bitcoin reserves, and greater tax and security oversight. Both see clear signs of continued institutional adoption through sustained investments in Bitcoin ETFs and stablecoins. Hougan anticipates the end of the memecoin boom is short-term, with fundamentals remaining strong, while Chen stresses the long-term potential of AI tokens for their actual use cases. Investors are urged to diversify, focusing on defensive assets like stablecoins and tokenized gold (PAXG, XAUT) for risk management. Despite heightened risks and ongoing market corrections, both retain cautious optimism, with Chen predicting Bitcoin will not fall below $73,000, and that patience and diversification could benefit long-term traders as regulatory and institutional developments progress.
Bearish
Both summaries underline an extended bearish trend, predicting the crypto bear market may last through Q3-Q4 2025 despite earlier bullish momentum with Bitcoin hitting $100,000. Security incidents—such as the Bybit ETH hack and exploits involving OM and Jelly—alongside memecoin collapses, have heightened caution and short-term downward pressure. However, regulatory improvements and continued institutional investment, plus the long-term promise of AI tokens, offer pillars of support for eventual recovery. In the short term, persistent volatility, elevated risks, and the recommendation to shift towards defensive assets all point to a continued bearish environment. The outlook remains cautiously optimistic for long-term growth, but immediate conditions favor a defensive, risk-averse stance.