Original article by: Sankalp Shangari
Original translation: TechFlow
This isn’t just another run-of-the-mill cryptocurrency cycle, it’s more like your favorite speakeasy being bought out and turned into a fancy cocktail lounge. The “decentralized gamblers” and retail speculators that once dominated the market are licking their wounds, while hedge funds, sovereign wealth funds, and traditional financial giants are coming in with tailored suits and algorithmic strategies ready to dominate the game.
The crypto veterans have seen more drama than a reality show—from the collapse of Mt. Gox and the ICO craze to the DeFi summer boom and the NFT gold rush that turned into a garage sale. They are now pinning their hopes on Bitcoin rising back to $120,000 to $150,000 as soon as possible, wondering whether they should cash out like retired poker pros or have another chance to play a crazy hand.
But then again - crypto is not dead, its just going through a corporatization transformation. New rules are being formed, and the question is: do you choose to adapt, or do you still ask Can Dogecoin go to $10?
1. The market is no longer what it used to be
The cryptocurrency market is like a once disorderly western frontier town that now has a Starbucks and a planning committee - the chaos is fading and institutional money is pouring in. The days when a stalk and a dream could multiply assets by a hundred times are gone. The new rules of the game are: suits, regulatory compliance, and macroeconomic games.
Bitcoin’s new “operator”: macroeconomics, not the “halving fairy”
If you still think that the price of Bitcoin is entirely determined by a four-year cycle, you are as out of touch with reality as an old guy waiting for a dial-up Internet connection. Bitcoin is now a macro asset that reacts to interest rates, global liquidity, and economic risk sentiment like a seasoned Wall Street trader. If you dont understand macroeconomics, youre like playing chess with a fidget spinner.
Retail investors exit, institutions take over
Remember when your Uber driver and barber were promoting altcoins and arguing over Ethereum gas fees? Those days are gone. Now it’s BlackRock, sovereign wealth funds, and traditional financial giants that are manipulating the market. ETFs have pumped billions of dollars into the market, but they’ve also turned Bitcoin into a corporate asset — less of a wild horse and more like Tesla stock with a bit of drama.
Liquidity differentiation: Bitcoin and Ethereum become VIPs, while altcoins are left out
Institutional money is pouring into BTC, ETH, and a handful of blue-chip altcoins like champagne, while liquidity in other assets is drying up faster than your New Year’s gym ambitions. Many small altcoins are turning into “ghost chains” — haunted by dreams of past bull runs and unwilling holders.
Trump Effect: Is it a meme or a liquidity trap?
Trump’s recent pro-crypto stance has injected new life into the market, such as discussing the establishment of a US strategic Bitcoin reserve and the rapid promotion of stablecoin regulation. However, his “meme casino” (such as $TRUMP, $MELANIA) has become a liquidity black hole, sucking away speculative funds and causing the entire market to gasp. It’s like a carnival where everyone spends their last dollar trying to win a big teddy bear, only to find that they don’t even have the fare to go home.
2. Web3 promises a revolution, but where is the practicality?
Web3 was supposed to change the world, but now it feels more like a Las Vegas buffet - full of hype, only a few dishes are good, and the rest are all junk food. DeFi was supposed to replace banks, NFTs were supposed to redefine ownership, and the metaverse was supposed to be the new gathering place for people. But after billions of dollars of promises, the only thing that is really widely used is stablecoins.
The only killer app: Stablecoins (aka “Advanced Internet Dollars”)
Forget the DeFi revolution and the NFT empire, the only real success of cryptocurrencies is creating a more efficient digital dollar with fewer middlemen. If Web3 were a sci-fi movie, stablecoins would be the only alien technology that actually works, and everything else would be just concept art and fan theories.
Speculative economy: speculation is still the main theme
Cryptocurrency still resembles a high-risk Ponzi carnival, with meme coins, influencer pumps, and over-hyped next generation public chains (such as TIA, SEI, MONAD, BERACHAIN) frequently launching with valuations of more than $5 billion, but with very few users. Its like opening a five-star restaurant, spending millions on marketing, but forgetting to hire a chef.
The collapse of the “fat protocol” theory
For years, the fat protocol theory of blockchain has argued that infrastructure should be worth more than the applications on it. But it turns out thats like investing in a road and expecting it to be more valuable than the cities it connects. Realistic enterprise valuations are often 5-15x P/E, while some stagnant L1 and L2 still exist at multiples of 150x to 1000x despite no growth. These chains are now more like a theme park without the rides - expensive tickets but full of broken promises.
VCs Still Need Exit Liquidity (and You Are That Liquidity)
Many innovative projects exist solely to allow early investors to exit, just like the ICO craze in 2017. If a project launches with an instant token unlocking mechanism and a fully diluted valuation higher than Coinbase, then congratulations - you are not investing, but becoming their exit liquidity. Its like buying a house, only to find out that the previous owner sold you the land, walls, and even the air in the room separately.
3. Crypto industry brain drain: developers are turning to AI
Crypto’s top developers are turning to AI like rats fleeing a sinking ship — or more accurately, like a Web3 influencer who deleted his “decentralization forever” tweet overnight and transformed himself into a “thought leader” in the AI space.
Why Developers Are Ditching Crypto for AI
Because AI is the new hotness, and cryptocurrency is more like that outdated rock star trying to continue selling out with an old song from 2017.
Clearer regulation
AI is like a talented but slightly scary child—governments are still hesitating whether to foster it or keep a close watch on it. Cryptocurrency? It’s still like the rebellious teenager who maxed out his grandmother’s credit card to buy Dogecoin, and is considered a problem child by the government.
Better financing environment
VCs are investing in AI like it’s the next Google, while crypto founders are left pitching their 12th “revolutionary” L1 project to empty conference rooms.
Fewer ups and downs
AI is like a consistent top student, while cryptocurrency is more like the student who either wins the science fair or burns down the lab — there is no in-between.
The Great Migration from Web3 to AI
The same “visionaries” who once promised a decentralized world are now training AI models to write business emails and even generate disturbingly realistic deep fake videos.
Cryptocurrencies once wanted to replace banks.
AI just wants to replace you.
According to the current trend, developers who stay in the crypto field are either true believers or those who are too lazy to update LinkedIn.
4. OGs are cashing out, but the game isn’t over yet
The crypto veterans — those who lived through the Mt. Gox collapse, the ICO craze, the DeFi run, and the “I accidentally sent my entire portfolio to the wrong address” phase — are finally cashing in. They’ve been in the industry long enough to know that when BlackRock started buying Bitcoin, the era of exponential growth was over.
Where did they go?
AI and Technology
Instead of betting on meme coins, it is better to develop an algorithm that can replace financial analysts.
real estate
After years of staking, mining, and leveraged trading, a true 100x return might be buying a house in Miami.
Semi-retirement life
Some OGs have had enough of scrolling through Coingecko at 2 a.m. and moved to tropical islands to communicate only in the language of Bitcoin maximalists.
But institutional money is taking over
The departure of OGs does not mean the end of cryptocurrency. On the contrary, large institutional funds are pouring into the market, just like when Wall Street’s financial elites discovered the charm of DeFi summer, they were two years late but still enthusiastic.
Cryptocurrency is no longer just a playground for decentralized gamblers and speculators — it’s evolving. The casinos are still open, but now the slot machines are owned by Goldman Sachs.
The question is: are you ready for the next chapter, or are you just here to FOMO the next round of meme coins?
5. Optimistic outlook: The next crypto boom will be… different
The next wave of cryptocurrency craze will be like that friend who once partied hard but now shows up to brunch in a suit and orders a salad instead of tequila. The chaos is settling down, and the once rebellious teenager is growing into a well-behaved, “investment-grade” adult — sort of.
Regulation is finally taking shape
Cryptocurrency is going through a makeover — like the class clown who suddenly becomes student body president. It’s still naughty, but now it’s wearing a brand new suit and a “Let’s Play by the Rules” badge.
The SEC has finally decided to stop treating every crypto exchange like a Bond villain. They dropped their lawsuits against Binance, Coinbase, Kraken, Uniswap, etc., like they finally realized that crypto isn’t going away — kind of like your dad finally stopping arguing with you over your “controversial” tattoo.
Decentralized Finance (DeFi) brokerage rules? The IRS may have to stop ruining everyone’s fun. Imagine telling your uncle: “You can still have the party — just don’t mess it up.”
The US Senate Banking Committee is about to vote on the Stablecoin Act, and the GENIUS Act is also gaining support. It’s like crypto finally got a parent’s signed permission slip for extracurricular activities.
Institutional adoption is accelerating
Big institutions are joining crypto like the “cool kids” of finance, like they’ve finally decided to let you sit at their lunch table.
BlackRock, JPMorgan and sovereign wealth funds are already there, and they are not just testing the waters - they are jumping right in at the deep end, praying their heavy portfolios dont hit bottom.
The UAE’s Mubadala fund is now a major holder of a Bitcoin ETF, proving that cryptocurrency finally has that “cool uncle” who can both tell jokes and pay for vacations.
Solana, XRP, and other ETFs are in the works, making the crypto party feel more like a black-tie gala, with suits replacing the casual crowd in flip-flops.
Cryptocurrency IPOs are coming
Now, cryptocurrencies are getting dressed up and ready to go public. We’re seeing IPOs from Kraken, Gemini, and BitGo moving forward — bringing transparency and credibility to a space that once resembled a high-stakes poker game played in a dark basement.
Going public is like the graduation ceremony for cryptocurrency — you finally get your diploma and a chance to explain to your worried parents what you’re doing.
Government attitudes towards cryptocurrencies are warming
The government that once thought of cryptocurrency as that crazy cousin who showed up at a house party drunk on home brew is now willing to share taxis with it. Crypto is getting the respect it always thought it deserved.
Several U.S. states are considering holding Bitcoin reserves — a bit like adding some “cool points” to their balance sheets.
Hong Kong approved spot Bitcoin and Ethereum ETFs, essentially saying, “We’ll take it, just don’t screw it up.”
The UAE, Brazil, and Australia are becoming the new “cool kids” in the crypto space by enacting friendly cryptocurrency regulations.
The EU’s MiCA framework is like a certificate of good behavior from a crypto teacher, saying, “You used to be a bit naughty, but we now allow you to play with the other kids.”
Final Thoughts: Adapt and Survive
Yes, the market has changed; yes, the OGs have grown tired and considered retirement; yes, scammers are still as active as those trying to sell “miracle” diet pills on Instagram. But every cycle brings new winners—like a reality show with ever-changing contestants and never-clear rules.
In 2013, Bitcoin pioneers were the wild west setters who claimed they were sitting on a gold mine while everyone else was still figuring out how to use PayPal.
In 2017, ICO founders saw white papers and thought, “Let’s raise $1 billion and then figure out what to do,” like a bunch of kids selling lemonade in the desert, except their bank accounts had a few more zeros.
In 2020, DeFi developers have been churning out new protocols faster than your uncle can tell you about his latest “risky” stock. They’ve been churning out new protocols like mad scientists trying to create decentralized money without blowing up their labs.
In 2021, NFT speculators see pixelated ape images as golden tickets to the chocolate factory, where instead of candy, theyre exchanged for bags of cash. While the rest of us are still trying to figure out what minting is, theyve become the Wall Street stockbrokers of the image world, raking in the dough.
In 2024, we saw the institutional ETF takeover, parallel to the rise of meme coin mania—until the defenders of meme coins realized that the takeover by suited Wall Street bankers was much more than they thought. We saw the entire image of crypto go from a rebellious teenager who only listened to punk rock to suddenly showing up at business meetings in a well-tailored suit and tie (but still with a little coffee in the tie).
2025 and beyond
The institutions have taken over. Either adapt and learn the game, or get left behind.
Bitcoin is still king, it is a macro asset like gold. Learn macroeconomics, learn how Wall Street thinks and trades.
The new government will continue to extract value from cryptocurrencies along with its allies. This is not new, just another player, just like FTX, Luna, 3AC or VC Coin in the past. You need to adapt and learn to play with these players instead of giving up easily.
As for altcoins, despite the huge amounts of money invested in them over the past decade, their real-world value remains limited. Most altcoins, including Ethereum and Solana, remain speculative assets with minimal real demand for their products. Once institutions start valuing these tokens based on actual fundamentals, many may appear severely overvalued. This is exactly why Bitcoin becomes even more important.
