The year 2025 remained mixed for the crypto market as the sector presents a balanced but optimistic outlook. On the positive side, there has been tangible progress: DeFi ecosystems have continued to grow, stablecoins have gained popularity, CBDC infrastructure pilots have progressed, and developer participation has increased across APAC and globally, with millions built on-chain.
“On the one hand, the industry has seen real progress: growth in DeFi projects, expansion of stablecoins, new CBDC infrastructure drivers, and increasing developer activity in APAC and globally, with millions engaging in blockchain code. On the other hand, after retail investor optimism at the start of the year, the October correction served as a reminder that sentiment remains fragile and hype without real delivery can still harm the industry,” Nischal said Shetty, founder of WazirX.
Bitcoin is down about 30% from its all-time highs and is down more than 6% so far this year as the market continues to struggle to recover from the October crash. Trading activity remains subdued, with retail speculation losing momentum, according to a Bloomberg report.
The decline was partly driven by technical factors, with prices falling below the 365-day moving average, while persistent selling by long-term holders also weighed on Bitcoin.
Key Drivers of the Crypto Market in 2025
Earlier this year, the market witnessed the creation of the US Strategic Bitcoin Reserve, highlighting the growing strategic importance of Bitcoin.
Midyear, the enactment of the GENIUS Act introduced a well-defined regulatory framework for dollar-backed stablecoins, building trust and paving the way for broader adoption.
The CFTC’s Dec. 4 decision to allow crypto spot products listed on registered futures exchanges represented a key step, moving the regulated ETF market toward more transparent cross-border compliance structures and greater institutional involvement.
Crypto Market Outlook in 2026
According to Shetty, the appetite of global institutions for regulated digital asset products will continue to increase, boosting capital inflows and contributing to market stability.
At the same time, the national policies of the countries will play a decisive role in the evolution of the confidence of the respective investors. In India, the foundation stone of the CBDC project could be laid soon, Shetty added.
“The RBI has announced a hackathon in October to train tech talents in the field of emerging technologies, which will encourage more Indians to consider emerging technologies as a promising career prospect. A clearer regulatory framework for VDAs, potentially coupled with favorable tax measures, support for stablecoin initiatives alongside CBDC measures, could unlock real-world use cases of blockchain by Indian builders to jump-start on-chain growth for Indians,” Shetty said.
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