The Web3 community weighed in on the crypto year that was and the crypto year that will be. Read more about Bitcoin, stablecoins and price movements below.
“Companies that continue positioning themselves solely as Bitcoin holders risk commoditization. The strategic advantage will shift toward those generating trustless yield through mechanisms like Bitcoin staking. Companies will compete on how much yield they generate rather than simply how much Bitcoin they hold.
“2025 made Bitcoin easier to hold and earn yield on. 2026 should make it easier to actually use. Bitcoin neobanks represent the natural evolution as the asset transitions from a passive store of value to an active financial infrastructure. These platforms will likely bridge the gap between Bitcoin’s monetary properties and everyday financial needs.
“Bitcoin and stablecoins dominated narratives throughout 2025. In 2026, those narratives should begin converging. Bitcoin-backed stablecoins enable users to hold Bitcoin as savings while accessing stable spending power, bridging crypto’s two largest use cases.
“The infrastructure is maturing rapidly with over-collateralized mechanisms, trustless Bitcoin yield providing base returns, and native stablecoin integrations on Bitcoin-secured chains. We’re likely to see innovative products like self-repaying Bitcoin loans where the underlying trustless yield covers interest payments, effectively allowing Bitcoin holders to access liquidity without opportunity cost.”
– Rich Rines, an initial contributor to the Bitcoin-aligned smart contract blockchain Core
“Smart money has been moving stablecoins back on-chain. We’ve seen over $59 million in USDC flow onto Ethereum this month, and USDT turned positive with roughly $13 million in new inflows over the past day. That normally reflects capital positioning for opportunities rather than exiting the market.
“We’re also seeing a shift in how that capital is being deployed. Tokenized treasuries like USTB have drawn about $34 million in inflows from smart money over the past 30 days, while some DeFi yield products such as sUSDe have seen outflows. Investors are still active, but they’re favouring lower-volatility, RWA-linked returns for now.
“Investors are focused on protecting gains rather than adding risk. Coinbase data shows systemic leverage falling from around 10% in the summer to 4–5% today, and hedge funds and family offices have reduced exposure following ETF outflows. Most of the defensive positioning is concentrated in year-end contracts to preserve 2024 performance, while longer-dated positioning remains broadly bullish.
“The takeaway is that traders are hedging into year-end and locking in profits instead of pressing new bets. Lower leverage and reduced open interest point to a healthier market structure, but near-term sentiment remains cautious. If macro conditions improve, particularly if the Federal Reserve signals a rate cut, the positioning supports the potential for a reset rally. And because January is typically when institutional desks reset their risk budgets, the level of stablecoin liquidity now sitting on-chain suggests investors have room to increase exposure when the macro picture becomes clearer.”
– Nicolai Søndergaard, research analyst at Nansen
“2025 saw a number of milestones for Bitfinex Securities, with the total value of products on the platform, from alternative assets to tokenised T-Bills, breaking above $250 million.
“Tokenization can open up regulated access to investment opportunities like micro financing bonds, litigation finance products, or Bitcoin hashrate contracts, assets that are not available on traditional markets.
“We expect this momentum to continue into 2026, with more alternative assets, innovative Bitcoin-mining backed fixed income products, tokenized ETFs, and our first tokenized equity offerings. We look forward to continuing to open up capital raising and investment opportunities for those that have long been underserved by the traditional financial system.”
– Jesse Knutson, head of operations at Bitfinex Securities
“The sharp rebound from ~$84K to ~$93K looks more like a liquidity-driven squeeze than a clean trend reversal. It’s too early to call a full shift in market structure when so many macro uncertainties remain — from the path of the Fed’s 2026 policy cycle to the appointment of the next Fed chair and the broader risk-averse tone across global markets.
“A significant part of the bounce was fueled by short liquidations after Vanguard’s shift about Bitcoin supported a strong bullish price movement. As prices climbed, highly leveraged traders betting against Bitcoin were forced to cover, creating a reflexive wave of buy orders that exaggerated the move.
“For a genuine reversal, Bitcoin needs to hold above the $93–94K cap with conviction and renewed spot demand. If it does, the next key resistance areas sit around $99,150 and then $104,275, levels that previously attracted strong pressure.
“There is a short-term liquidation component to the rally, but the broader move has real fundamental support. This is the first time the major, traditionally conservative institution, Vanguard has opened the door — even selectively — to crypto exposure. That’s a psychological turning point. When a $11 trillion asset manager moves from ‘no crypto exposure’ to ‘crypto access via third-party ETFs,’ it signals institutional normalization.
“This comes alongside Bank of America suggesting up to a 4% crypto allocation for wealth clients — meaning the traditional-finance mindset is shifting. Importantly, Vanguard is not opening the floodgates: no leveraged tokens, no speculative altcoins, only regulated ETFs. That means inflows will build gradually as its eight million self-directed customers adjust, which actually supports a more sustainable trajectory rather than a speculative spike.
“So while the rally has an element of euphoria, the underlying structural demand is real — and stickier than short-term liquidation flows.
“There are three critical risks worth watching: custodial concentration risk, financialization risk and governance influence.
“First, as ETF inflows grow, more of the underlying Bitcoin ends up stored with a small number of custodians like Coinbase or Gemini. This creates single points of failure — operationally, technologically, and from a regulatory standpoint. A system designed to be decentralized becomes dependent on a handful of institutions.
“Then, ETFs make Bitcoin easier to access, but they could also turn it into a derivative-based, IOU-style exposure. Investors increasingly hold paper claims on Bitcoin rather than the asset itself, diluting Bitcoin’s core attributes such as direct ownership, censorship-resistance, and permissionless access. The rise of complex products — income strategies, covered-call Bitcoin ETFs, synthetic exposure — pushes it further into traditional finance territory.
“Finally, if institutions accumulate large positions through ETFs, the industry could eventually gain outsized influence over protocol development or network priorities. While Bitcoin’s governance is resilient, concentrated institutional ownership introduces a new type of soft power that runs counter to the network’s decentralized ethos.
“In short, ETFs democratize access — but they also risk centralizing control.”
– Carolane de Palmas – ActivTrades Analyst
As we close 2025, how would you characterize the fundamental health of the global crypto market?
“I would characterize the fundamental health of the global crypto market as mixed, but gradually improving in structural terms. The industry is moving deeper into integration with traditional finance, with more regulated institutions entering the space and infrastructure becoming increasingly mature. However, most of the internal, crypto-native growth drivers that fueled previous bull cycles are either already priced in or are expected to have a more gradual, long-term impact rather than generating immediate upside.
“In the short and medium term, major cryptocurrencies remain heavily influenced by macroeconomic conditions — particularly interest rates, liquidity trends, and broader risk sentiment. It is important to note that this dynamic primarily applies to a small set of leading assets such as BTC, ETH, XRP, SOL, BNB, TRX, etc, which have reached new all-time highs over the past few years.
“The rest of the market tells a very different story. A large portion of altcoins never fully recovered from the 2022–2023 crypto winter and continue to trade significantly below their 2021 highs. Even the short-lived bursts of enthusiasm around memecoins did little to alter the structural picture, as very few of these tokens trade above their listing prices.
What macro trends (rate cuts, dollar liquidity, emerging-market adoption, regulatory shifts) have played the biggest role this year?
“One of the most influential macro-driven trends in crypto this year has been the increasing accumulation of digital assets by both financial and non-financial corporations. Corporate treasury allocations — following the example set by early adopters — became a major catalyst for market momentum in the first half of the year. This ‘corporate reserve’ trend effectively acted as a new form of institutional demand, reinforcing the narrative of Bitcoin and select large-cap assets as alternative stores of value.
“While broader macro themes such as expectations for rate cuts, shifts in global liquidity, and the stabilization of regulatory frameworks also shaped investor sentiment, the wave of companies adding crypto to their balance sheets had a particularly visible impact on price action. The growing number of ‘copy-cat’ strategies amplified the effect, contributing to strong capital inflows and supporting market performance throughout the year.”
“How do BTC and ETH fundamentals differ now compared with 2023–2024, and what does that say about their resilience going into 2026?
Compared with 2023–2024, both Bitcoin and Ethereum are significantly more integrated into the traditional financial system in 2025. This deeper integration — through institutional products, corporate treasury adoption, and broader participation from regulated financial intermediaries — has strengthened their credibility but also increased their sensitivity to macroeconomic conditions.
“As a result, BTC and ETH now behave more like mainstream risk assets. While this reduces idiosyncratic volatility and improves long-term stability, it also increases their exposure to shifts in global macroeconomic sentiment.”
What will be the strongest fundamental drivers behind BTC and ETH’s performance in 2026? What fundamental risks should investors watch in 2026?
“The strongest fundamental drivers of BTC and ETH in 2026 will remain macroeconomic.
“Both assets now exhibit a higher correlation with equities and other high-beta risk assets, meaning shifts in global risk sentiment will have a more pronounced impact than in previous cycles. This applies in both directions: a supportive macro backdrop can amplify upside, while a downturn can transmit more directly into crypto markets.
“The key macro variable to monitor in 2026 will be the trajectory of U.S. interest-rate cuts. The market outcome will depend heavily on the context in which easing occurs:
“Soft landing scenario: If rate cuts are delivered alongside moderating inflation and stable economic growth, liquidity conditions will improve without triggering recession fears. This would be broadly constructive for high-beta assets, including BTC and ETH. “Stagflation or ‘cutting into inflation’ scenario: If inflation remains elevated or reaccelerates while the Fed begins to cut, markets may interpret the move as a sign of weakening economic conditions or a loss of policy control. Historically, such environments have led to a decline in risk assets. Under this scenario, crypto would likely face significant headwinds.”
How may institutional participation evolve in 2026?
“I expect an increasing number of jurisdictions to establish clear and transparent regulatory frameworks for the crypto industry, which should facilitate broader participation. Consequently, we are likely to see a significant rise in the involvement of banks and other financial institutions in the market in 2026.”
Any milestones or catalysts could shift your outlook to a bullish or bearish stance?
“Currently, the U.S. economy serves as the primary benchmark for global financial markets, with market sentiment heavily influenced by developments in the U.S. A potential catalyst that could shift this outlook would be an acceleration of dedollarization, combined with the sustained growth of economies outside the U.S. Should other economic centers and currencies gain greater influence globally, it could fundamentally alter the current dependencies on the U.S. market. However, I do not anticipate such a shift occurring within the next few years.”
– Ruslan Lienkha, chief of market, YouHodler