as cryptocurrency market As the volatility continues, Bitwise CEO Hunter Horsley has a bullish outlook. in post In X, Horsley argued that crypto market cycles are easily predictable because they follow patterns that are followed by experienced investors.
Bitwise CEO says crypto cycle follows a familiar pattern
According to him, the current drawdown in the cryptocurrency market is not new and happened in early 2025. Horsley explained that Bitcoin fell 12% in the first quarter of 2025, but then recovered in the second and third quarters. This pattern has previously played out in 2022 as well.
In his opinion, for example, the current decline in Bitcoin prices of about 25% from its all-time high (ATH) of $126,000 could lead to a significant recovery. Despite the cancellation of gains by investors, Horsley noted that a rebound in cryptocurrencies should occur in the first quarter of 2026.
People have seen it dozens of times before with cryptocurrencies.
Sharp drawdown. Horror, a new theory as to why it ended. The bull market continues and the price has reached new highs.
In fact, once in 2025, there was a decrease in the first quarter, an increase in the second quarter, and an increase in the third quarter.
Still, people will be surprised.
In the case of cryptocurrencies…
— Hunter Horsley (@HHorsley) December 19, 2025
He countered the horror stories in the broader crypto space by some investors who think “crypto is over.” Horsley noted that historically, the pattern of “up and down” movement in prices has remained constant.
Interestingly, despite this repeating pattern, “people will still be surprised,” Horsley said.
The Bitwise CEO claimed that it is normal for some investors to panic during market declines until the market recovers. When that happens, those same panicked investors will express surprise, he said. But rebounds are just as common as crashes, so savvy investors know this will happen and already expect it.
The market capitalization of the cryptocurrency sector reached approximately $4.2 trillion at the beginning of Q4 2025. However, as a result of the current drawdown, it has plummeted to $2.97 trillion. If Horsley’s prediction comes true, the cryptocurrency sector could expect a recovery within the first three months of 2026.
Analysts agree on oversold signal heading into Q1 2026
Horsley is not alone in predicting a bullish recovery for the crypto sector. Fundstrat Capital CIO Tom Lee recently expressed confidence that Bitcoin will recover soon.
Mr. Lee opined that Bitcoin is highly oversold And based on historical precedent, a recovery could occur by mid-2026.
This matches Horsley’s prediction, but the timeline is different. Other analysts like Julian Bittel point to Bitcoin’s Relative Strength Index (RSI) falling below 30 as a further sign that a recovery is near for the major crypto asset.
With less than two weeks left until Q1 2026, market participants will be watching to see what happens next. Hunter Horsley’s Prophecy hold.
