The year 2025 has remained mixed for the crypto market as the sector presents a balanced yet optimistic outlook. Looking at the positive side, there was tangible advancement—DeFi ecosystems continued to grow, stablecoins gained wider traction, CBDC infrastructure pilots moved forward, and developer participation surged across APAC and worldwide, with millions building on-chain.

“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, WazirX.

Bitcoin has fallen roughly 30% from record high levels and is down more than 6% so far this year, as the market continues to find it difficult to recover after the October crash. According to Bloomberg report, trading activity remains subdued, with retail speculation losing momentum.

The decline has partly been driven by technical factors, with prices dropping below the 365-day moving average, while persistent selling by long-term holders has also weighed on Bitcoin.

Key drivers of the crypto market in 2025

At the beginning of the year, the market witnessed the setup of US Strategic Bitcoin Reserve, underscoring Bitcoin’s rising strategic significance.

By mid-year, the enactment of the GENIUS Act introduced a well-defined regulatory framework for USD-backed stablecoins, strengthening confidence and paving the way for wider adoption.

The CFTC’s December 4 decision to permit listed spot crypto products on registered futures exchanges represented a key milestone, advancing the market from regulated ETFs toward more transparent cross-border compliance structures and greater institutional involvement.

Crypto market outlook in 2026

According to Shetty, global institutional appetite for regulated digital-asset products will continue to increase, driving capital inflows and contributing to market stability.

At the same time, domestic policies for countries will be key in shaping their respective investor sentiment. In India, the foundation stone of the CBDC project could be laid soon, Shetty added.

“The RBI has announced a hackathon in October to nurture tech talents in the emerging technology space, which will encourage more Indians to see emerging tech as a promising career prospect. A clearer regulatory framework for VDAs, potentially paired with supportive tax measures, support for stablecoin initiatives alongside CBDC measures, could unlock real-world blockchain use cases from Indian builders to kickstart on-chain growth for Indians,” Shetty said.

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