aimanmalikk

If you are feeling bearish on crypto that is understandable. 2025 has been a difficult year and crypto has been one of the worst performing asset classes so far, even with a pro crypto administration in office. Many believe the cycle is over, that there will be no new all time highs, and that altcoins will continue to bleed while serious investors stay away.
But history shows that this thinking often proves wrong.
Crypto markets ultimately respond to one thing: liquidity. While liquidity improved overall in 2025 the Fed maintained a tight stance for much of the year. That began to shift in mid December when the Fed started reserve purchases of around forty billion dollars per month in Treasury bills, with expectations that easing could continue into 2026. On top of that, discussions around tariff funded rebates and progress toward clearer crypto regulation could open the door for institutional capital to flow in.
It is also important to remember how small crypto still is. The entire crypto market is worth around three trillion dollars, which is less than the market value of several individual US companies and far smaller than money market funds or even silver. This means crypto represents only a small fraction of global liquidity and still has significant room to grow.
The upside will not come instantly. Past cycles delivered massive gains after long periods of corrections and sideways action. We may see more choppy months ahead with brief rallies and renewed pessimism. Historically those periods of low participation and negative sentiment have been where patient investors positioned themselves for the next major move.
#CryptoUpdate #AimanMalikk