The decline of the crypto market in 2025: Institutions are quietly taking over

What is a slump? Simply put, it’s a market downturn. But the crypto market in 2025 is quite interesting — prices are falling, yet institutional appetite is growing stronger.

Retail investors are selling, institutions are buying

Numbers speak for themselves. In 2025, Bitcoin(BTC) fell by 5.4%, Ethereum(ETH) dropped nearly 12%, and mainstream altcoins declined between 35-60%. It looks grim. But at the same time, the US spot Bitcoin ETF saw approximately $25 billion in net inflows, with assets under management reaching between $114 billion and $120 billion.

BlackRock’s IBIT made history — surpassing $50 billion AUM in just 228 days, holding about 780,000-800,000 BTC. Fidelity and Grayscale are close behind. These three institutions now control nearly 89% of the ETF market assets.

What’s happening simultaneously? Retail investors are collapsing. On-chain data shows small transfers (a sign of retail investors) plummeted 66%, while large transactions over $10 million increased by 59%. Retail investors have offloaded about 247,000 BTC. Google searches for “bitcoin” hit an 11-month low.

The conclusion is clear: power is shifting from retail investors to professional asset managers.

Long-term holders are also transferring

A deeper story is unfolding on the chain. From March 2024 to November 2025, long-term holders have released about 1.4 million BTC, worth approximately $121 billion. But this time is different from previous years — prices did not crash due to the sell-off, instead remaining above six figures.

Public companies are also participating in this takeover. Globally, 134 companies hold about 1.686 million BTC. This isn’t short-term speculation but strategic allocation — treating Bitcoin as a formal asset on their balance sheets rather than gambling chips.

Policies and infrastructure are “paving the way”

In early 2025, the Trump administration signed a crypto executive order supporting the creation of a strategic reserve of about 200,000 BTC. The new SEC chair, Paul Atkins, has signaled a more friendly stance. The probability of passing the Market Structure Bill is as high as 77%.

Stablecoin issuers are also expanding their purchases of short-term US Treasuries. Analysts expect these scales could grow tenfold within three years.

Globally, regulation is also catching up. Payment ecosystems are evolving — platforms like MoonCard have launched payment cards directly linked to stablecoin wallets.

Current BTC price and future outlook

The current BTC price is $91.17K (a correction from the all-time high of $126.08K). Although prices are under pressure in 2025, with an annual decline of -9.96%, institutional outlook remains optimistic. VanEck targets $180K, Standard Chartered expects $175K-$250K, and Grayscale, based on ETF inflows and circulating supply reduction, anticipates new highs in early 2026.

Key point: The “slump” in 2025 is actually a false proposition. On the surface, prices are falling, but in reality, it’s a dramatic shift in power structures — an end to an era driven by retail speculation, and the beginning of an era defined by institutional allocation.