While 2025 has seen bitcoin enjoy record highs, approaching US$110,000 in January, the cryptocurrency is now more than 20 per cent down from its peak a mere two months later. Year-to-date losses have bitcoin over 6 per cent in the red.
Now the world’s largest cryptocurrency is seeing a classic sideways or “choppy” market, with no clear indicator as to which way it might go next.
This is according to Coinstash co-founder Mena Theodorou, who says the market is witnessing a recalibration.
“With the US Federal Reserve last week holding rates steady and crypto-specific catalysts in short supply, crypto is tracking macroeconomic signals more closely than ever,” Theodorou said.
“Good and bad news alike are having less impact on prices, liquidity is thinning out and sentiment remains low. With ETFs now live and banks cleared to custody crypto, bitcoin is becoming increasingly institutionalised and behaving more like a traditional risk asset – responding to macro signals over crypto-native narratives.”
Acknowledging that this shift isn’t necessarily a bad thing, Theodorou noted that the debate over whether the bull run is over or merely undergoing a healthy consolidation is just beginning to heat up.
For instance, CryptoQuant’s chief, Ki Young Ju is, convinced that the rally is done, the Coinstash co-founder pointed out, citing some $920 million in exchange-traded fund (ETF) outflows and bitcoin’s failure to hold above US$100,000.
“Meanwhile, others point to ongoing institutional interest and macro liquidity as evidence that this is just a pause before the next leg up.”
Ultimately, Theodorou said, bitcoin is “boring right now – and that’s OK”.
“This lull is part of a healthy market cycle, especially after some significant highs across Q1. With ETF pipelines expanding, smart capital still accumulating and macro uncertainty driving a cautious mood, we believe this pullback is part of a healthy market reset and consolidation, not necessarily a reversal.
“The market is clearly recalibrating after a rather hectic first few months of the year.”
Until a clear catalyst for the cryptocurrency emerges, he said to expect the sideways drift to continue.
But even as bitcoin’s price action stalls, Theodorou underscored that ETF filings continue to accelerate.
“Hashdex is seeking to add XRP, SOL, and ADA to its Nasdaq Crypto Index ETF. Volatility Shares launched two Solana ETFs, while 21Shares and Nasdaq are pushing for a Polkadot ETF. Canary Capital is also making moves, filing for a SUI ETF and preparing to combine PENGU tokens with Pudgy Penguins NFTs in a novel product,” he added.
“ETF flows and filings may not move prices immediately, but they’re laying the groundwork for broader altcoin exposure by institutional investors, which will matter a lot more when the next bullish wave begins.”
Beyond BTC and ETH
According to Theodorou, Solana last week faced backlash after releasing an ad titled “America is Back–Time to Accelerate”. The politically charged ad was pulled shortly following criticism from industry leaders, inviting questions about Solana’s brand strategy.
“But it wasn’t all bad news for Solana,” he added.
Namely, the first US-listed Solana futures ETF officially launched, marking a major milestone for the sixth largest cryptocurrency.
However, Theodorou noted that the debut drew just $12.3 million, well below the figures racked up by bitcoin and Ethereum futures, “highlighting lingering institutional caution around altcoin derivatives”.
“Despite being the breakout chain of this cycle, Solana now faces a pivotal question: can it move beyond its reputation as the memecoin chain?
“While ETF volumes remain modest, it’s still early days. The launch reflects a growing institutional appetite for assets beyond bitcoin and Ethereum … It’s clear SOL remains a central player – even as it navigates across mixed sentiment.”
