A year ago, bitcoin was breaking records above $126,000. Today, it trades near $83,000, down 34% from its peak, after losing more than half its value at one point.
But here’s what I find most interesting. While bitcoin was losing ground, the crypto industry was moving forward. Institutional adoption, stablecoins, tokenisation and regulation have continued to reshape the market, even as prices struggled.
That raises a bigger question: are we still looking at crypto mainly as an investment opportunity, or are we starting to see it become part of the financial system itself?
Bitcoin is becoming more institutional, but it remains vulnerable. ETFs have transformed market access, although liquidity, interest rates and the dollar continue to influence its performance. A sustainable recovery will require genuine buying demand, not just short covering.
Altcoins, meanwhile, are entering a more selective phase. Ethereum, Solana and other networks may see activity increase without their tokens necessarily gaining value. What matters is user growth, revenue and, above all, who captures that value.
Stablecoins are also beginning to demonstrate real utility through payments, international transfers and liquidity management. Their role extends far beyond speculation and could even reinforce the dollar’s position in the international financial system.
Tokenisation is beginning to change the rules, too, shifting from simply representing assets on a blockchain to connecting trading, custody and settlement within the broader financial system.
At the same time, regulation and AI are opening a new chapter. MiCA in Europe and regulatory developments in the US are helping to shape the playing field, while AI agents and programmable money point towards new ways of operating and managing financial services.
So, what comes next? For bitcoin, the key is whether it can maintain current levels and attract sustained ETF inflows and genuine spot demand. More broadly, crypto’s next phase will be less about narratives and more about turning technological progress into real business, revenues and value.
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