After the dynamic increases that we observed at the beginning of 2025, the cryptocurrency market began to slow down. Bitcoin, after reaching record highs above $120,000, entered a correction phase, and many altcoins lost even several dozen percent from their peaks. It is no wonder that more and more investors are asking themselves: has the bull market ended, or is it just a temporary correction?
On one hand, there is a clear cooling of sentiment and a decrease in the inflow of new funds into the market. On the other hand, interest from financial institutions continues to grow rather than diminish. Bitcoin ETFs, asset tokenization, and increasingly regulated investment platforms may mean that it is large capital that helps extend this growth cycle for many more months.
Temporary declines or the beginning of a bear market?
The last weeks have not been the best for the crypto market. Bitcoin fell below key support levels, and altcoins suffered even more. According to analysts, investor sentiment is the worst since the collapse of the FTX exchange in 2022. However, it's not just one dramatic crisis – rather, it's the accumulation of several factors, focusing here on:
slowdown in inflows to Bitcoin ETFs,
profit-taking by large players,
less interest in new projects,
and low liquidity, which exacerbates declines in times of panic.
To all this, it is added that traditional markets – especially stocks and gold – have been performing significantly better in recent months. Some retail investors have therefore moved capital from cryptocurrencies to the stock market, seeking more stable profits.
Why is it not yet the end of the bull market?
Despite short-term weakness, most experts emphasize that the long-term trend of Bitcoin remains bullish. Such corrections happen in every cycle and are often needed for the market to cleanse itself of excessive speculation. Moreover, the current decline is not accompanied by any "euphoria" – and it is precisely excessive emotions and buying mania that usually ended the bull market.
Many analysts point out that Bitcoin still behaves healthily from a technical perspective. It is testing moving averages (e.g., 50- and 200-day), which in previous cycles often served as turning points leading to new waves of growth.
We must not forget that interest rates are starting to decline, and central banks are slowly ending tightening monetary policy (so-called QT). As money becomes "cheaper" again, capital naturally seeks higher returns – which favors risky assets like Bitcoin or Ethereum.
Capital rotation – a story that repeats itself!
In 2012, 2016, and 2020, we observed a similar pattern. First, gold rose – investors protected capital from uncertainty. Then, as the situation in the markets stabilized, the so-called "risk-on mode" began, meaning a shift to riskier assets. That’s when Bitcoin took over investors and started another wave of growth.
In 2025, it could be similar. Gold recently reached records and is starting to decline from its new ATH, while stock indices like the S&P 500 are gaining strength. Historically, this is the moment when the cryptocurrency market often begins a new phase of a bull market.
This capital rotation works both in the world of traditional finance and in crypto itself. First, funds flow from cash to Bitcoin, then to large altcoins (like Ethereum, Solana, or BNB), and finally to smaller, more speculative projects. So if BTC maintains current levels and starts to rebound, we can expect another wave of growth also in altcoins.
Institutions are joining the market – a big change!
What most distinguishes the current bull market from previous ones is the scale of institutional adoption. Never before have so many large companies been interested in cryptocurrencies.
Bitcoin and Ethereum ETFs are attracting billions of dollars monthly.
Investment banks are developing their own tokenization platforms – e.g., JPMorgan and BlackRock are testing the issuance of digital bonds and funds on the blockchain.
Payment platforms like PayPal and Stripe offer Web3 wallets and the ability to hold stablecoins.
Even governments are starting to introduce regulations that legalize the market instead of blocking it.
All of this makes cryptocurrencies more accessible, legal, and accepted. For institutions, transparency, security, and legal compliance matter – this is the direction the current market is heading. As a result, we may witness a new, more stable phase of the bull market, driven not by emotions, but by real demand from companies and funds.
Tokenization and real applications
Just a few years ago, most blockchain projects were pure speculation. Today, more and more of them find real applications in the economy. Tokenization of assets, that is, transferring real values (e.g., stocks, real estate, or bonds) to the blockchain, is gaining popularity among banks and investment firms.
In 2025, tokenization will be a fact. It creates a 24/7 market, without borders and with minimal costs for intermediaries. And since more and more institutions want to participate in this process, the demand for blockchain infrastructure – and thus for cryptocurrencies – is only increasing.
What could extend the bull market until the end of 2025?
Increasing involvement of ETFs and investment banks – influx of new capital to Bitcoin and Ethereum.
Declining interest rates – more cheap money seeking returns in digital assets.
New regulations – increased security and trust in the market.
Tokenization of real assets – merging the world of traditional finance with blockchain.
Improvement in investor sentiment – if the stock market maintains its gains, capital may flow back into cryptocurrencies.
Summary: the bull market may only take on a new shape
Although many investors worry that the best moments are behind us, history shows that such corrections are a natural part of every cycle. The market needs a breather before moving forward. The most important thing is that the fundamentals remain strong: more and more institutions, better infrastructure, and greater acceptance from regulators.
Therefore, instead of asking whether the bull market is ending, it is worth asking: is it not entering a more mature phase – one in which crypto stops being a niche market and becomes a lasting element of the global financial system?
