Is this crypto winter different? Key observers reevaluate Bitcoin

Bitcoin has slid since an October peak above $120,000 and fell sharply in recent weeks, down more than 25% on the month. Market observers have offered differing explanations for the sell-off. Some point to institutional adoption: large financial firms bring significant capital but lower risk tolerance, and much of the earlier euphoria has faded.

Federal Reserve governor Chris Waller said firms that entered from mainstream finance had to adjust their risk positions, and Galaxy Digital CEO Mike Novogratz noted institutions have a different appetite for risk than retail investors, who chase outsized returns.

Grayscale found recent Bitcoin moves correlate more with high‑enterprise‑value software stocks than with gold, while Bloomberg strategist Mike McGlone described the asset as highly speculative and neither digital gold nor leveraged beta. Grayscale remained more optimistic about Bitcoin’s long‑term prospects but said future success depends on institutional involvement and clearer regulation.

United States

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