Cross-border settlements using crypto also gained traction during the year. At the same time, real-world asset tokenization began to see adoption, drawing interest from institutions, corporates, and governments. Crypto participation expanded beyond retail investors, with institutional and sovereign-level engagement increasing.
Also Read | India’s crypto tax regime nets ₹1000 cr in TDS collections: Govt in ParliamentRegulatory signals from regions such as Korea, Singapore, Russia, Ukraine, and parts of Europe were largely supportive. In the US, discussions around crypto policy continued, adding to positive sentiment. Market participants focused on real-world applications such as tokenization, asset allocation, and settlement use cases.
Another key driver in the first half was the performance of spot exchange-traded funds. The Bitcoin ETF, launched in January 2024, continued to see inflows in 2025, with holdings and trading activity reaching about $160 billion. During this phase, the total crypto market capitalisation touched a record $4.3 trillion.
Stablecoins also gained attention after the introduction of the GENIUS Act in the US. While Bitcoin reached all-time highs, stablecoins saw capitalisation rise to around $310 billion, with several countries discussing their role in payments and settlements. Markets are still awaiting clarity on the proposed Clarity Act, which is now expected in the first quarter of 2026.
The second half of the year saw a reversal in sentiment. Bitcoin, which hit an all-time high of around $126,000 in October, later traded in the range of $87,000 to $90,000. The token declined nearly 35% from its peak due to profit-taking and changing macro conditions.A hawkish stance by the US Federal Reserve affected risk assets globally. Equity markets weakened, while funds moved toward assets such as gold and silver. Part of this rotation came at the expense of crypto. Capital also shifted toward themes such as artificial intelligence and electrification.
Also Read | Indian investors move beyond just Bitcoin as average token count rises sharply: CoinDCX
Trade tensions, including US tariffs on China and other regions, led to liquidation across asset classes. Crypto markets were among the hardest hit, with total market capitalisation falling from $4.3 trillion to about $3 trillion, implying a loss of nearly $1 trillion.
By the end of 2025, most major cryptocurrencies were trading lower for the year. Bitcoin was down about 6.5%, while Ether declined around 12%, despite both having reached record highs earlier in the year.
Binance Coin remained the only major token trading in positive territory. Cardano fell about 58%, while Solana and Ripple declined roughly 35% and 11%, respectively. Polkadot and Avalanche closed the year with declines in the range of 60% to 70%.
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