Is Crypto Winter Coming? (2025)

Bankrate, Binance, NASDAQ, and Reddit have all recently posted articles on preparing for a coming crypto winter…but is there any truth to this? Unfortunately, we believe there is. Cryptocurrency goes through periods of feast and famine, and since it has been feast for so long, we fear the famine is coming.

Cryptocurrency tends to follow a natural rise and fall pattern, and although we wish it weren’t true, with a recession approaching, it may bring a crypto winter with it. Keep reading to learn more.

What is Crypto Winter?

First and foremost, for those not familiar with cryptocurrency terms, crypto winter is a term used to describe a market downturn specifically in cryptocurrency. A time when trades are slow, and, as a result, prices enter a period of decline.

It’s important to note that this is not the same as a crash. A crypto winter typically comes after a period of decline, with prices “freezing” around a previous high, but not the current high. While crypto winters are generally perceived with disdain by traders, they can be a good way to determine the price floor of a particular currency.

Is Crypto Winter Coming?

In short, most likely. In recent days, the market has begun showing several indicators of a decline, and when you combine that with the negative investor sentiment, a crypto winter is probably well on its way.

Of course, investors have been talking about the coming crypto winter since May 2025, and it hasn’t hit just yet, indicating that things may not be quite as dire as they think. However, many aspects of the economy have shifted since May 2025, most notably the tariffs, which is just one of the few things which is hurting the economy right now—and could serve to induce a crypto winter.

Signs Used to Predict Crypto Winter

There is no exact science for predicting a crypto winter, however there are several market indications which analysts watch for. Several of these have come to fruition in recent months, which is what has led to the negative market sentiment.

·      Social media chatter about cryptocurrency has reduced

·      Less news coverage on cryptocurrency

·      Recession markers in the United States economy

·      Less consumer spending across the world

·      A Bitcoin halving event recently occurred

·      Companies are retracting instead of expanding

·      Rising Federal Interest Rates

If you have been following our blog for a while, you know that all of the above is true except the last one, as economists actually predict an interest rate cut is coming this fall. We are less optimistic, believing instead that the rates will hold steady, but still, it has an effect on cryptocurrency.

Another question you may have about the list is the relevance of the Bitcoin halving events. If you didn’t know it, Bitcoin transactions make up 50% of all cryptocurrency transactions, so whenever there is a change to the protocol, even one as insignificant as the mining rewards, there is always a stall in the market that follows.

The Dangers of a Crypto Winter

You are likely reading this, wondering what the big deal is. If crypto winters happen so frequently, why are they a concern?

Well, historically, nothing kills off a portion of the cryptocurrency market quite like a crypto winter. In fact, during the one that occurred in 2021/2022, we saw the fall of FTX, TerraLuna, Three Arrows Capital, and more. Crypto winters are especially hard on smaller, less popular tokens and exchanges, and some inevitably will fall.

It’s impossible to predict which tokens will make it and which will fail, but inevitably, Bitcoin and Ethereum always seem to survive.

In addition to the fear of smaller tokens failing, crypto winter has an especially negative impact on the regulatory aspect of cryptocurrency. This happens because every single time a token or platform fails, ultimately, people lose money. Even if it isn’t as drastic as the fall of FTX, it makes regulators nervous, often setting cryptocurrency back.

Can You Prepare for Crypto Winter?

The most important part of preparing for crypto winter is preparing yourself for the mental anguish that comes with it. Crypto winter is hard for all involved in cryptocurrency, and leaves many second-guessing their choice to be involved in the industry, no matter their role.

Many prepare for crypto winter by curbing the amount of risk they take on just before it. Many sell some of their smaller, lesser-known positions for tokens that are more likely to survive a long-term bear market. While this is certainly one tactic, know that you don’t have to do this. You can maintain any positions you choose to, just prepare yourself that lesser-known blockchains are always lost during crypto winter—though it is impossible to predict which ones will go under.

Dollar cost averaging is one of the best tactics to employ during a crypto winter, as it will likely pay off in the long run. Still, ensure you don’t invest anything you can’t live without, as it is never certain how long a market downturn will last.

Plus, we recommend maintaining at least some diversity during a market downturn. Though it might seem safer to move everything to Bitcoin or Ethereum, there is always a chance these currencies will go under as well (albeit small), so we recommend at least keeping your investment divided between three assets at a minimum.

Remember, above all else, you can use cryptocurrency for purchases, especially if you have a cryptocurrency debit or credit card. Thus, while a crypto winter should scare you, know that no matter what else, you will be able to spend your cryptocurrency if necessary—unless of course you are choosing to hodl! The choice is yours.

Overall, a crypto winter is probably on its way, and that factor alone is scary. Still, while crypto winters can be nail-biting and filled with uncertainty, they are part of the cryptocurrency life cycle. So, take the time to lower your risk exposure and buckle down—better days will come back eventually, we promise.