Crypto market sees mixed 2025 as Bitcoin tanks 30% from peak; what's in for 2026

Crypto market roundup: 2025 was a mixed bag for the crypto market as Bitcoin led the digital token markets to new highs but are set to end the year on a volatile note with single digit losses. However, it scaled all time highs during the year but selling in the riskier assets and AI stocks dented the sentiments for digital tokens as well.

Bitcoin had started 2025 around $93,500 levels, supported by Donald Trump's victory, strong institutional inflows and rising investor demand for digital assets. However, this was led by profit booking as Bitcoin tumbled to $77,000 levels in April and soared nearly 64 per cent to all time highs around $126,000 in October 2025.

The crypto industry matured significantly, driven by institutional adoption, regulatory clarity in key markets, and the expanding integration of blockchain into traditional finance and real-world applications. Bitcoin’s position strengthened as a macro-resilient asset, while Layer-1 ecosystems evolved from pure scalability races to delivering practical developer-driven innovation, said Sathvik Vishwanath, Co-founder and CEO at Unocoin.

However, Bitcoin has slumped more than 30 per cent from its peak to $87,550 in the last 24 hours. Its total market capitalization has dropped to $1.85 trillion, making it the eight most valuable asset in the world. Bitcoins dominance in the crypto market continues to hold firm, around 60 per cent. Bitcoin is down nearly 6 per cent on a year to date basis.

Positive developments such as a pro-crypto stance in the US, rising corporate adoption of Bitcoin as a treasury asset, and the approval of altcoin ETFs supported sentiment, broader macro pressures weighed on the market, said Edul Patel, CEO at Mudrex. "Geopolitical tensions, trade-related concerns, and the US government shutdown added to short-term uncertainty, keeping prices slightly below where the year began."

Amid this selling pressure, the total market capitalization of all crypto assets in the world slipped below $3 trillion dollars, which once used to hover around $4.2-4.3 trillion at its peak. Like other asset classes, volumes in the crypto market continue to remain thin, hovering below $90 billion in the last 24 hours.

The historically 4-year halving cycle suggests that Bitcoin may have peaked in late 2025, but other measures, including valuations, ETF purchases, and global money supply point to potential upside in 2026. The halving tends to increase scarcity and historically has led to an increase in the price of bitcoin.

"2026 will be a pivotal year where infrastructure, regulation, and real-world utility align. The industry is shifting from speculative cycles to sustainable, value-driven growth. Leaders who focus on compliance, user experience, and interoperability will be best positioned to shape the next decade of digital finance," said Vishwanath from Unocoin.

Market participants believe that with improving regulatory clarity and growing institutional participation, the next phase of growth is likely to be more stable and sustainable than past cycles. Some reports are suggesting wider use of digital assets in market infra and global commerce.

The outlook remains optimistic. Global central banks have begun easing liquidity, a trend that historically benefits risk assets like crypto. Despite the recent consolidation, underlying demand remains strong. As institutional activity picks up in early 2026 and expectations of Federal Reserve rate cuts build, ETF inflows could strengthen further," Patel from Mudrex adds.