Crypto traders debate whether 2025’s drawdown is a new bear market or a late-cycle reset as QE, global rate cuts, and the U.S. CLARITY Act shape the 2026 outlook.
Summary
- Bitcoin slipped from key highs and broke major support as most large-cap coins posted yearly losses, while only privacy plays like Monero, Zcash and BNB stayed green.
- Macro divergence, from U.S./UK rate cuts to Japan’s hikes and renewed geopolitical risk, weighs on sentiment even as growing stablecoin supply signals latent liquidity.
- The Digital Asset Market CLARITY Act, which could split SEC/CFTC oversight and end “regulation by enforcement,” is set for Senate review in early 2026.
Cryptocurrency traders and investors are questioning whether the digital asset market has entered a bear phase as 2025 draws to a close, amid ongoing price declines and speculation about potential regulatory changes and monetary policy shifts in 2026.
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Bitcoin traded below recent highs following the release of U.S. Consumer Price Index data and an interest rate cut from the Bank of England. The combined cryptocurrency market capitalization retreated near a key trillion-dollar threshold before recovering slightly, according to market data.
