Cryptocurrencies Face Turbulent Times as Market Shifts Intensify: The Bull Case for 2026

Crypto's not dying—it's evolving. Forget the doom-scrolling headlines; the real story isn't about turbulence, it's about transformation. The market isn't just shifting; it's shedding dead weight and building real infrastructure. This is where the next bull run gets its legs.

The Shakeout is a Feature, Not a Bug

Volatility isn't a sign of weakness in crypto—it's the system purging speculation. Every dip washes out short-term noise, leaving stronger protocols and more committed builders. The projects solving real problems? They're not just surviving the shifts; they're getting ready to lead.

Institutional Winds are Changing

Look past the daily charts. Major financial players aren't leaving; they're quietly building. Regulatory frameworks are crystallizing globally, from the FSA in Japan to clearer guidance in the EU. This isn't a crackdown—it's a legitimization playbook being written in real-time. The 'wild west' narrative is getting a serious compliance upgrade.

Tech is Bypassing the Old Guard

Decentralized finance isn't waiting for permission. It's cutting out intermediaries, automating trust, and creating markets that operate 24/7. This structural shift makes traditional finance look like it's moving in slow motion—and paying hefty fees for the privilege. The real turbulence is in the boardrooms of legacy banks, not on the blockchain.

The market's intense shifts aren't a death knell. They're growing pains. While traditional finance masters the art of moving decimal points and collecting fees, crypto is rebuilding the plumbing of the global economy. The turbulence today is just noise before the signal—and the signal is getting stronger by the week.

As we approach the end of 2025, the landscape for cryptocurrencies has experienced a tumultuous year marked by significant market activities. A notable concern has been the excessive selling by short-term investors, a point emphasized by on-chain analyst Darkfost. A recent assessment from Bloomberg provides a fresh perspective on the current state of the crypto market.

Data Manipulation Concerns

Earlier days saw Anıl warning investors about FUD (Fear, Uncertainty, and Doubt) and data blindness when 800,000 BTC were moved. Darkfost from CryptoQuant highlights the misinterpretations concerning short-term investors. He argues that the perception of them “selling like crazy” is misleading, largely due to skewed interpretations of on-chain metrics.

The movement of approximately 800,000 BTC by Coinbase has significantly impacted on-chain data. Coinbase eliminated and created new LTH (Long-Term Holders) UTXOs while Bitcoin$90,357.50 was trading around $85,000. This action skewed datasets across platforms, affecting metrics dependent on UTXO such as time/value cohorts and realized values.

Despite reports implying rampant selling by LTHs, including coverage by Bloomberg, Darkfost insists that a deeper examination reveals otherwise. Adjusted data shows LTH distribution aligns with typical behavior observed throughout the market cycle.

Thus, much of the panic surrounding the market may be overstated. Although the outlook remains uncertain in the short term, there is potential for relief once the panic subsides, possibly post-January FUD.

Current Market Dynamics

Bloomberg’s recent report, focusing on crypto hedge funds, reveals that these funds have faced their toughest year since 2022. Fundamental and altcoin-focused strategies suffered approximately a 23% decline, with only market-neutral funds achieving about 14.4% gains.

The influx of institutional capital via ETFs and structured products narrowed traditional arbitrage opportunities. This shift prompted many funds to reduce altcoin positions and pivot toward DeFi, where structural opportunities persist.

On-chain analyst Maartunn, suggests that despite poor stock performance, Strategy’s push for more BTC through MSTR created selling pressure. After achieving ATH (All-Time High), MSTR shares plummeted to a 442-day low. Potential fund reclassification by MSCI on January 15 could trigger more withdrawals.

There is a silver lining with the rejection of USDT dominance at the 6.5% resistance level, previously indicating an altcoin rally from a market low. As USDT dominance retracts, altcoin values are seeing an uptick.

Altcoin valuations and market capitalizations are benefiting from decreased USDT dominance. This resistance rejection bodes well for future growth prospects.

Overall market volatility remains influenced by current news cycles, and the CryptoAppsy‘s news section can serve as a helpful tool for navigating these dynamic conditions.