Honestly, the market in 2025 makes people shake their heads—Bitcoin consolidated from the beginning to the end of the year and finally fell about 6%, while altcoins fared even worse, with an average shrinkage of over 40%. Everywhere online, there are claims that "cryptocurrencies are doomed," but I have to say, if you let these words scare you, you might miss the next opportunity. Today, I want to honestly discuss why I believe there's no need to be overly pessimistic now, and that 2026 might actually be the real turning point.

Let's face the reality: in 2025, cryptocurrencies indeed became one of the worst-performing asset classes. The comparison is clear—silver rose 140%, gold increased 70%, even the US Nasdaq gained 19%, but Bitcoin was the only one to decline. The logic behind this is actually not hard to understand:

Liquidity "pumping" is the key factor. Last year, global central banks cut interest rates 316 times, which sounds impressive, but the Federal Reserve has been engaging in quantitative tightening, effectively pulling water back out through another channel. Naturally, funds moved to safer places—gold and US stocks both have clear regulatory frameworks and tangible backing, making them much more stable than virtual assets.

The halo around ETFs has faded too quickly. Early in the year, spot ETF approvals led everyone to believe institutional funds would flood in. But what happened? The enthusiasm didn't last more than half a year. Once the hype cooled down, the market realized there was no continuous influx of new funds, and prices naturally couldn't hold up.

Altcoins are even worse off. Except for a few top projects, most coins lack practical applications and have poor liquidity. When the market fluctuates, they fall the hardest. I've seen too many projects rush to issue tokens on the coattails of hot trends, only for the market to turn, revealing the "naked swimmers" in full view.