The cryptocurrency market has been declining lately, raising eyebrows among analysts and investors given the many favorable events this year, including new regulations and the launch of ETFs.
CNBC crypto contributor Ran Neuner stated, “At some point, we need to admit that something is structurally broken in the crypto market.”
He mentioned that various encouraging factors, like increasing liquidity and support from the pro-crypto US government, should have positively impacted the crypto market. Yet, the total market cap is expected to finish the year over 32% below its peak of $4.4 trillion from early October.
Crypto market cap is on track to end the year lower than it started. Source: CoinGecko
Two Possible Outcomes for Crypto
Neuner foresees two potential scenarios: one involving the identification of the underlying issue and sellers, or the other being a significant recovery as markets typically behave.
Economist Adam Kobeissi remarked, “One day, we will look back at the last 2 months of seemingly daily mass crypto liquidations and what’s happening will be crystal clear:”
“Crypto is experiencing a structural shift amid historic levels of leverage.”
Moreover, analyst “PlanB” described the situation as an ongoing struggle until the sellers run out of resources.
The Crypto Winter
Some experts are adamant that a bear market has already begun. Markus Thielen, CEO of 10x Research, noted that Bitcoin transitioned into a bear market late in October 2025, emphasizing that this cycle has seen minimal retail participation.
“Retail participation never meaningfully returned this cycle, and value creation remained narrowly concentrated in Bitcoin rather than broadening across risk assets. Winter isn’t approaching; it has already arrived.”
Industry Fundamentals Remain Strong
Despite the market downturn, the foundational aspects of the industry are still robust. Erik Lowe, head of content at Pantera, stated that while the market has not met price expectations, this year has marked significant structural advancements in the crypto space. He highlighted crucial developments like shifts in regulatory positions, establishment of a US Bitcoin reserve, and increased tokenized real-world assets.
“From that perspective, we believe there hasn’t been a more important year for the industry than 2025. This is the year we began laying the deep caissons to support durable, long-term growth.”
