Wolfe Research has confirmed a bear phase in cryptocurrency markets, identifying a full-fledged “Crypto Winter” as of December 2025. In a report published December 18, analyst Rob Ginsberg pointed to persistent selling pressures and deteriorating technical indicators across key digital assets. Major cryptocurrencies, including Bitcoin and Ethereum, are trading near critical support levels, signaling ongoing downside momentum amid cautious investor sentiment worldwide.

Crypto Market Faces Prolonged Bearish Conditions

In the report titled “Winter is Coming,” Wolfe Research highlights that most major coins now trade below important moving averages and hover close to their 52-week lows. Unlike typical downturns that see oversold metrics prompting rebounds, this crypto cycle shows no such reversal signals, indicating sellers maintain firm control. Bitcoin’s brief rallies recently failed around resistance levels, and its next key support is expected near $75,000 following the latest breakdown.

Similarly, Ethereum’s price stalled at its 50-day moving average before turning lower again, with a retest of support near $2,600 anticipated. Ginsberg noted Bitcoin’s relative strength compared to many altcoins, as the Alt Coin Index returns to troughs reminiscent of 2023. The analyst emphasized that historically, Bitcoin tends to underperform altcoins only near market bottoms, a phenomenon closely monitored for potential signs of recovery.

Broader Market Repercussions and Sector Impact

The bearish crypto sentiment extends into equity markets, particularly affecting stocks with crypto exposure which have seen renewed selling. Ginsberg observed that divergences between Bitcoin and traditional equities have converged recently, often a precursor to wider market selloffs. This alignment suggests crypto volatility is increasingly influencing conventional financial instruments.

The report also references long-term crypto market cycles, affirming that the current four-year cycle accurately predicted the most recent peak. According to Wolfe, this cyclical pattern indicates the elevated price levels reached last year are likely to persist for around two more years, reinforcing expectations of a sustained low-price environment.

“Negative trends remain in place across the board,” Ginsberg wrote, highlighting the lack of momentum reversal and underscoring the entrenched bear conditions gripping the crypto space.

Bear: Market Outlook

As 2025 concludes, cryptocurrencies remain mired in a bearish phase. Bitcoin is positioned to test support near $75,000, with Ethereum approaching a critical floor around $2,600. Investors should brace for persistent pressure across both digital assets and crypto-linked equities. With key technical indicators signaling no oversold relief and cycle analysis projecting extended stagnation, the “Crypto Winter” label frames a challenging environment for market participants facing ongoing uncertainty in the sector.