Crypto Struggled In 2025 Despite Positive Fundamentals
Despite numerous positive factors in 2025—such as pro-crypto government policies, new crypto exchange-traded funds, increased institutional buying, strong performances in traditional markets, and key regulatory milestones—crypto prices have underperformed, with total market capitalization down over 32% from its October peak and nearly 13% since the start of the year. Analysts suggest two scenarios: either there is an underlying structural issue and major sellers yet to be identified, or an eventual sharp market rebound is imminent. Elevated leverage and ongoing selling, partly from market veterans and technical traders expecting a cyclical downturn, are adding to pressure. Some analysts believe a bear market has already begun, with weaker retail participation and limited value spreading beyond Bitcoin. Nonetheless, industry fundamentals are viewed as more robust than ever, citing regulatory advances, growth in stablecoins and tokenized assets, and the foundation laid for long-term development.
