The crypto market has faced a tough time this year. It’s currently about 13% lower than at the start of the year. Bitcoin, the most well-known cryptocurrency, is down by approximately 8%. The total value of all cryptocurrencies, called market capitalization, dropped below $3 trillion this week. This is the lowest we’ve seen since April. But some experts think it’s not as bad as it seems.
Eric Balchunas, a senior analyst from Bloomberg, pointed out something interesting. He said that although this year’s performance feels like a setback, we should remember how much Bitcoin has grown in the past. Over the last two years before this year, Bitcoin’s value increased by an impressive 468%! This means that on average, it gave an annual return of 138%, which is eight times higher than what U.S. stocks usually offer. He explained this situation with a simple analogy: “It’s like your ice cream sundae now has 55 cherries instead of 60. You’re still doing great!”
Feels Worse Than Past Crashes
A cryptocurrency trader named ‘Toni’ added to this discussion. He explained that this dip in Bitcoin’s value isn’t a sign of trouble or a so-called “bear market” (a time when prices drop significantly). He thinks this is just a natural step in Bitcoin’s overall growth. He said, “The big price spikes from things like Bitcoin ETFs caused a temporary surge, and now the market is simply returning to its long-term trend. This process is actually healthy.”
But why does this year feel so challenging? An analyst named ‘Ash Crypto’ said it’s because of many problems that piled up. Some of these include the FTX collapse, the LUNA crash on the Terra blockchain, and issues like lawsuits from the SEC and Gary Gensler, a U.S. regulator (learn more about him here). There were also bankruptcies of big companies like Celsius Network and BlockFi, and the failure of Three Arrows Capital.
But despite all this, Ash Crypto says there were positive changes too. These include better crypto policies in the U.S., record-high stock and commodity values, big players adopting cryptocurrencies, and an increased global supply of money. He explained that markets usually recover when people feel discouraged and are ready to give up.
A Painful 2025, But What’s Next?
Crypto investor Jesse Eckel said that 2025 has been especially tough. He called it a “year of pain” marked by challenges like tariffs (a tax on trade) and conflicts affecting the global economy. But he believes that 2026 will bring a lot of growth and recovery. According to him, governments and policymakers want to see the economy booming, so they are taking big steps to make that happen. For instance, interest rates have already been cut three times, the central banks are expanding their balance sheets, and fewer tariffs are being imposed (learn more about tariffs here).
Is Bitcoin Still a Good Investment?
If you look at Bitcoin’s performance over the years, it’s still much stronger than before. For example, compared to two years ago, Bitcoin’s price has doubled. It’s also over 400% higher than it was in late 2022. Even though there was a recent drop, Bitcoin is still trending upwards in the long run.
Right now, Bitcoin’s price is around $87,000. This is about 31% lower than its all-time high but slightly up by 2.3% after Japan raised its interest rates. Several factors could help Bitcoin regain its strength, including more institutions buying it, rate cuts, and increasing global liquidity (more money circulating in the economy).
In the end, experts suggest not to panic. They recommend looking at Bitcoin’s chart from a bigger, yearly perspective. Despite short-term difficulties, the long-term growth story of Bitcoin continues to stay strong.