The year 2025 has delivered a mixed but cautiously optimistic outcome for the global crypto market. While prices struggled amid volatility, the underlying ecosystem continued to witness steady progress across decentralised finance (DeFi), stablecoins, central bank digital currencies (CBDCs), and blockchain development.
On the positive side, DeFi ecosystems expanded further, stablecoins gained wider adoption, and several countries advanced pilot programmes for CBDC infrastructure. Developer participation also surged across APAC and other global regions, with millions contributing to on-chain innovation.
“On one hand, the industry saw real progress: growth in DeFi projects, expansion of stablecoins, new CBDC-infrastructure pilots, and rising developer activity across APAC and globally, with millions committing to code on-chain. On the other hand, after early-year optimism from retail investors, the October correction was a reminder that sentiment remains fragile and that hype without real delivery can still hurt the industry,” said Nischal Shetty, Founder of WazirX.
Bitcoin Performance in 2025
Despite these structural advancements, Bitcoin has faced significant price pressure. The world’s largest cryptocurrency has fallen nearly 30% from its record highs and is down over 6% year-to-date, as markets struggled to recover from the sharp October correction.
According to a Bloomberg report, trading volumes remain muted, with retail participation losing momentum. The downturn has been partly attributed to technical factors, including Bitcoin slipping below its 365-day moving average, along with continued selling by long-term holders.
Key Crypto Market Drivers in 2025
The year began on a strong note with the establishment of the US Strategic Bitcoin Reserve, highlighting Bitcoin’s growing strategic importance at a sovereign level.
Mid-year, the enactment of the GENIUS Act brought regulatory clarity to USD-backed stablecoins, boosting market confidence and laying the foundation for broader institutional adoption.
A major milestone came in December when the US Commodity Futures Trading Commission (CFTC) approved listed spot crypto products on registered futures exchanges. The move marked a shift beyond ETFs, improving cross-border compliance frameworks and strengthening institutional participation in digital assets.
Crypto Market Outlook for 2026
Looking ahead, Shetty expects global institutional demand for regulated digital-asset products to increase further in 2026, potentially driving capital inflows and enhancing market stability.
Domestic policy developments will also play a crucial role in shaping investor sentiment. In India, the groundwork for a CBDC rollout could be laid soon. The Reserve Bank of India’s announcement of a hackathon aimed at nurturing emerging technology talent is expected to encourage more Indian developers to explore blockchain and Web3 opportunities.
“A clearer regulatory framework for virtual digital assets (VDAs), supportive tax measures, and alignment between stablecoin initiatives and CBDC development could unlock real-world blockchain use cases and accelerate on-chain growth for Indian builders,” Shetty added.
Disclaimer
This article is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency investments are subject to market risks, and readers are advised to conduct their own research or consult a qualified financial advisor before making any investment decisions.
