Mark Yusko said that a new “crypto winter” has arrived, but he stressed that this one doesn’t resemble the brutal crashes of past cycles. He describes it as a cooling-off period driven by a reassessment of Bitcoin’s fair value. For him, this moment is more about repositioning than panic.
How Yusko Defines This “New” Crypto Winter
Yusko argues that Bitcoin’s earlier surge only pushed the price slightly above its fair value when measured through network models. He relies on Metcalfe’s Law to show that the asset was not in a major bubble. Because of that, he believes the current correction should be far milder than past 80 percent drawdowns.
He points to several factors accelerating the downturn, such as slower inflows of new capital, profit-taking by long-term holders and the natural pressure of futures markets. Even so, he insists this is not a moment for capitulation. Instead, he frames it as a phase where strategic positioning makes more sense than emotional reactions.
Despite the decline, Yusko highlights forces that still support the asset class. He argues that persistent monetary expansion strengthens Bitcoin’s store-of-value narrative. He also notes that reduced leverage lowers the risk of cascading liquidations.
At the institutional level, he says adoption is no longer hypothetical but an active flow of capital reshaping the market. This shift raises new standards for custody, compliance and risk management. He warns, however, that traditional incumbents often try to slow innovation as crypto moves deeper into regulated finance.
In the end, Yusko sees this phase as a technical correction backed by macro trends and growing institutional involvement. He believes the real signal will come from how the next market cycle develops. Institutional capital deployment, in his view, will indicate the true turning point ahead.