Analysts at Pantera Capital, the oldest crypto fund, note that 2025 was a disastrous year for the vast majority of cryptocurrencies, with the exception of Bitcoin, whose growth was supported by institutional demand.
In its January review, Pantera Capital notes that 2025 was an unsuccessful year for most of the crypto market, except for Bitcoin. According to the company's assessment, price movements last year were mainly determined by macroeconomics, capital flows, and the behavior of major players, rather than the development of the projects themselves.
Pantera estimates that the bear market for altcoins has been going on since December 2024. The company calls this “perhaps the most underrated fact of 2025.” The total capitalization of crypto assets, excluding Bitcoin, Ethereum, and stablecoins, fell by about 44% during this period. Most tokens have fallen significantly in price, and the decline has been widespread.
Pantera also notes that the current decline in altcoins is in line with previous cycles in terms of its duration.
*Pantera Capital is one of the first and largest cryptocurrency investment companies, founded in 2013 by former Tiger Management top manager Dan Morehead. It specializes in venture investments in blockchain projects and manages billions in assets through funds focused on DeFi, infrastructure, and direct investments in crypto project tokens.
The company separately points to the sharp divergence between Bitcoin and the rest of the market. Bitcoin benefited from its status as “digital gold” and steady demand from ETFs, corporations, and government agencies. Other tokens did not have such support, which exacerbated capital outflows and pressure on prices.
Additional factors contributing to the decline were unresolved issues regarding the value of tokens for investors, a slowdown in blockchain activity, and the departure of retail speculators. At the same time, the use of stablecoins continued to grow, but the main economic benefits from this went to companies and services, rather than token holders.
Assessing the outlook for 2026, Pantera notes that the market has become significantly less overheated. Participants have reduced their use of borrowed funds, prices have already undergone a deep correction, and speculative activity has declined.
According to the company, this makes the beginning of 2026 more stable compared to the beginning of last year, provided that the fundamental indicators of the market do not deteriorate. “Periods of market imbalances have historically become the basis for the next phase of growth,” the authors write.
