Cryptocurrencies have been doing great throughout 2025 after starting to pick up speed in the fourth quarter of the previous year. The election of a different administration boosted prices as a result of its positive feelings for the digital coin marketplace. Most expected the same trend to continue until the end of this year and into 2026, but it seems that things are taking a different turn. Even though Bitcoin has remained strong (in spite of the corrections that would have historically affected the prices quite a lot), data shows that the market is starting to turn a little bearish.
During this time of the year, investors would turn to altcoins as a means of diversifying their portfolios, so you might notice traders are starting to look into how to Dogecoin and add assets such as Ethereum and Solana to their portfolios as well. However, researchers remain convinced that the momentum is cooling and that investors have to find ways to protect their capital if they want to avoid dealing with significant losses.
Market indicators
Most BTC market indicators have gone from bullish to bearish despite a recent recovery. Right now, only two out of ten metrics are still bullish, namely the Bitcoin demand growth and the Technical Signal. The former measures how much demand there is in the marketplace for an asset, and it has remained consistently bullish since July. The latter keeps track of common technical analysis indicators and figures. The Profit and Loss index, Bull Bear cycle indicator, MVRV-Z score, Network Activity Index, Inter-exchange flow pulse, stablecoin liquidity, trader realized price, and trader on-chain profit margin remain in the red.
The last time these indicators were in the red was back in April, when BTC plummeted to $75,000; however, by July, they had turned green. Many investors were not surprised by this change, as August and September have historically been the worst months for cryptocurrencies in the entire year. However, others point out that the current conditions are part of the larger bull marketplace as well. The Bull Score Index has fluctuated between 20 and 30 for a while now, and the corrections remain ongoing. The CBBI (the CoinGlass Crypto Bitcoin Bull Run Index) is currently at 74, about three-quarters into the bull market. But only a single one of the 30 bull market metrics has been on an upswing, the one for the altcoin season index.
Bitcoin vs altcoins
Bitcoin has enjoyed a very solid run for almost a year now, but it has recently started to fall behind the altcoins. Some of the other asset classes, such as equities, stocks, and gold, have also recorded more consistent performance when compared with the king of crypto. Centralized exchanges have also reported low levels, and buying fell off considerably as well. Most of the investors have preferred to remain within the equity proxies, with the short-term outlook seeming a little more challenging at the moment.
Here as well, many believe that the reason for this is nothing more than a regular correction that is part of the larger bull market. According to this scenario, the bull cycle will extend and could bring new all-time highs in both Q4 and Q1 of 2026. In the meantime, Bitcoin has reclaimed some of its previous milestones, with investors pointing out that the corrections have been way shallower and less effective than they used to be during previous cycles.
Crypto treasury
Crypto treasury companies will have to adopt new strategies if they want to keep evolving and thriving as the maturing market comes with a new set of challenges. Currently, researchers believe that these businesses are entering a player-versus-player stage, during which companies will be competing harder than ever for investor money. As a result, the crypto market prices are predicted to continue climbing. According to the opinions of some analysts, the days of easy money and mNAV are on their way out.
DATs (digital asset treasuries) are undergoing a phase where they need to learn how to be strategically positioned, and those that know how to develop their strategies will have the opportunity to benefit from unprecedented capital flowing and supercharging their returns. Some are concerned that the marketplace for crypto buying companies has already become oversaturated and that it is unlikely that it will survive in the long term. The scarcity premium investors have benefited from dissipated, with the marketplace reaching a crucial inflection point as a result.
Execution, differentiation, and timing will be the aspects businesses need to focus on in order to remain relevant. If they don’t know how to utilize them, there will be a lot of issues ahead.
The rise of altcoins
Altcoins are nothing new, and as they all followed the example of Bitcoin in how they were designed and built, they’ve always been included in the portfolios of crypto lovers. Some of the institutional investors that have become increasingly interested in crypto assets have recently focused on bringing altcoins to their portfolios as well. The idea here is that they can help make the space more diverse and bring energy to portfolios, as well as ensure more returns as the assets become more consolidated.
Since BTC has been trading sideways for a while and most traders are waiting for the surge that is expected towards the end of the year, the present is an ideal time to diversify holdings. However, this is a positive thing for Bitcoin as well, as it could surge on the back of these positive developments. As the markets continue to benefit from better regulatory frameworks and the blockchain revolution continues to pick up speed, things will definitely change in the ecosystem.
To sum up, the cryptocurrency market is currently undergoing a challenging period, but most investors and market analysts remain optimistic. After all, corrections have occurred in the past, and they are now much less powerful than they used to be. The prices have remained strong and will most certainly continue to do so, but in the meantime, traders must prioritize the well-being of their portfolios and devise strategies that align with their long-term goals.
