Crypto has all the ingredients for a bull market, yet prices keep falling
19-12-2025
On paper, the crypto market appears to have everything it needs for a sustained bull run. Still, the sector remains under pressure, with total market capitalization ending the year below where it started. This disconnect has left investors questioning why prices continue to trend lower despite supportive fundamentals.
Strong fundamentals, weak price action
Several factors that typically fuel market growth are already in place. These include a more favorable regulatory stance, the rollout of crypto ETFs, rising institutional participation and improved liquidity conditions. Yet, price momentum has failed to follow.Two narratives shaping the market
Market observers see two possible explanations. One suggests that something may be structurally broken, requiring clarity on who is selling and why. The other frames the current phase as a period of consolidation that could ultimately set the stage for a powerful catch-up move.Economists note that ongoing liquidations are reshaping market structure. While uncomfortable in the short term, this process can help flush out excess leverage and lay the groundwork for a healthier recovery.
Has the bear market already started?
Some analysts believe the market is already in a bearish phase. They point to limited retail participation and the concentration of value creation within Bitcoin, rather than a broad-based rally across the crypto ecosystem.Long-term foundations remain solid
Despite near-term weakness, others argue that the market‘s underlying structure remains strong. Progress in regulation, infrastructure development and stablecoin growth are viewed as key pillars for long-term expansion, even if prices lag in the meantime.In summary:
Disclaimer: This article does not constitute financial advice. Always conduct your own research before making investment decisions.