Regulation as the foundation of the market
One of the most important developments this year was the further embedding of crypto in laws and regulations. In the United States, the so-called GENIUS Act was passed in early February. This law set clear requirements for crypto companies, with special attention to stablecoins, reserves and transparency towards investors.
The reason for this law lay in previous market incidents where investors had insufficient protection. For many private investors, the introduction of stricter rules initially felt like a brake on innovation. Yet the opposite turned out to be true. Precisely because clear frameworks were introduced, large financial parties dared to become more involved in crypto.
For institutional investors, regulation is not an obstacle but a precondition. Banks, asset managers and funds only step into markets where risks are transparent and manageable. The GENIUS Act contributed greatly to crypto no longer being seen as a gray area, but as a recognized financial sector in the making.
Institutional adoption changes market structure
The influx of institutional capital had a major impact on the way the market behaved. Crypto began to behave more and more like other financial markets. Prices reacted more frequently to macro economic factors such as interest rate expectations, inflation and geopolitical tensions.
Bitcoin and Ethereum in particular tookcenter stage. Bitcoin was increasingly approached as a digital store of value, while Ethereum continued to develop as an infrastructure for financial applications. This division of roles provided more stability, but also less room for unsubstantiated speculation.
At the same time, this development meant that rapid and extreme increases became less obvious. The market became deeper, more professional and therefore less forgiving of mistakes.
The October 10 liquidation as a harsh reality check
A painful but important moment in 2025 was the great liquidation on Oct. 10. On that day, more than $19 billion worth of leveraged positions were liquidated within a short period of time. Long positions on Bitcoin and Ethereum were hit especially hard.
The immediate cause was a combination of macro economic news and an extremely high concentration of leverage trading. When the market began to fall, a chain reaction ensued in which positions were automatically closed. What began as a limited correction turned into a rapid and sharp decline.
This event highlighted the vulnerability of excessive leverage, even in a market that feels mature. For many investors, this was a wake-up call. Liquidations like this remove weak positions from the market and ultimately create a healthier structure, but they also show that risk never goes away.
From hype to selection
Bitcoin and Ethereum have different goals, but are working toward the same end point. Bitcoin wants to be an independent, reliable monetary network. Ethereum wants to build an open financial system that anyone can run applications on. Together, they represent a complete alternative to traditional financial structures.
Bitcoin provides trust and scarcity. Ethereum provides usage and innovation. That makes their relationship similar to digital gold and a global financial infrastructure that runs on it. Curious about the full connection between Bitcoin and Ethereum and how they complement each other? Read our article about it here called,"The connection between Bitcoin and Ethereum and how they complement each other.
Conclusion
The year 2025 marks a clear transition for crypto. Regulations such as the GENIUS Act gave the market structure and legitimacy. Institutional adoption changed the behavior of prices and investors. And events such as the Oct. 10 liquidation made it clear that risks are still present, but also that the market is correcting itself.
Crypto in 2025 is no longer a playground, but neither is it a risk-free system. It has become a mature market in which knowledge, discipline and risk management make the difference. This very maturity is the basis for crypto's next phase.
Disclaimer: Investing involves risk. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts' own insights and experiences. They are therefore for educational purposes only.