Crypto Market Analysis: 2025 Review and 2026 Outlook

Market Volatility Characterization

The cryptocurrency market demonstrated high volatility throughout 2025, influenced by various factors including monetary policy decisions and liquidity flows ²

. Despite the Federal Reserve's three rate cuts in 2025, particularly in the last quarter, the crypto market reacted contrary to expectations, experiencing selling pressure rather than gains ⁵

Source 5

https://internasional.kontan.co.id/news/suku-bunga-as-turun-kripto-tertekan-ini-arah-bitcoin-dan-ethereum-pada-2026

.

Bitcoin Price Dynamics

Bitcoin's price surged to US$126,000 in October 2025 before correcting to around US$89,000 by year-end. This movement was accompanied by a significant decline in global crypto market capitalization from its peak of US$4.28 trillion to approximately US$2.99 trillion ³

.

Market Sentiment and Future Prospects

Analysts from Reku note that while the correction marks a significant change in market sentiment, it may be forming a new foundation for the next market cycle ¹

. The after-effects of the 2024 Bitcoin halving continue to influence market dynamics, contributing to the tightening of supply and shaping market sentiment ²

Source 2

https://investasi.kontan.co.id/news/sepanjang-2025-aset-kripto-bergerak-dengan-volatilitas-tinggi

.

Expert Insights and Investment Strategies

Industry experts emphasize that Bitcoin remains a relevant investment due to its role as a digital store of value, widespread adoption, and high liquidity ³

. For 2026, investors are advised to monitor macroeconomic indicators and monetary policy changes closely.