Asset landscape reversed in 2025: Precious metals and US stocks "attracting money," cryptocurrencies fall back into high-risk camp.

2025 disrupted the familiar income landscape of the past. Cryptocurrencies entered a long period of decline and consolidation, eventually becoming one of the worst-performing assets. At the same time, traditional assets unexpectedly became the biggest winners of the year. Silver and gold performed exceptionally well, while US stock indexes also maintained steady growth. This differentiation exposed a key industry issue: in 2025, cryptocurrencies lost their status as defensive assets or alternative assets and returned to the category of high-risk assets. Precious metals and US stocks "compete" for funds, cryptocurrencies end 2025 "with a whimper" In 2025, precious metals performed strongest, intensifying competition for funds with cryptocurrencies funds seeking refuge during times of uncertainty. Silver prices rose by about 140% for the year, gold prices rose by about 70%, both hitting historical highs. This upward trend is structural: expectations of loose monetary policy and geopolitical risks led investors to turn to assets with simple hedging functions. Amid widespread uncertainty, investors are increasingly opting for investment tools with a long history, clear regulation, and high liquidity. Accessibility also plays a role: gold and silver can be easily purchased through exchange-traded products (including ETFs), while in the digital realm, tokenized products linked to physical assets RWA solutions are still developing. This lowers the entry barrier for some investors and supports demand for precious metals. Against a backdrop of limited supply, industrial demand (especially from CECEP Solar Energy and electric vehicles) further drove up silver prices. Hedging demand and supply-demand balance not only supported silver growth but also led to a rise in copper prices by about 37%, highlighting a broader trend in 2025: the market favors assets with real demand support. While US stocks and cryptocurrencies experienced parallel fluctuations in 2024, by 2025, the contrast between the two became apparent. US stocks ended the year with positive returns, while cryptocurrencies mostly closed with losses. As of now, the Nasdaq index rose by 19%, the S&P 500 index rose by 17%, and the Russell 2000 index rose by 14% in 2025. Market support from slowing inflation and easing expectations, as well as the artificial intelligence investment cycle attracting additional demand for the technology sector. For cryptocurrencies, this backdrop explains the reconfiguration of risk capital. Investors are increasingly turning to regulated trading tools with high liquidity and clear rules to acquire assets. In such a scenario, stocks appear more attractive in terms of risk-return balance, while cryptocurrencies, after a strong start at the beginning of the year, failed to sustain the influx of funds throughout the year. The cryptocurrency market failed to maintain its growth trajectory. At the start of 2025, the cryptocurrency market looked almost perfect. The launch and massive expansion of the US Bitcoin spot ETF sparked strong inflows of funds, pushing Bitcoin prices to new highs and leading investors to once again discuss a "new cycle." In a brief period, cryptocurrencies regained their position of competing for large sums of money in traditional markets. However, the situation changed in the second half of the year. After the initial push from the ETF effect faded, the market had to face reality: liquidity remained fragile, regulatory risks persisted, and the macro environment was not conducive to aggressive risk-taking. As a result, cryptocurrencies entered a phase of adjustment and consolidation, while funds began flowing into more predictably profitable assets. During this time, precious metals and related ETFs, as well as funds and ETFs tracking US stock indices, became the focus of the market, benefiting from expectations of loose monetary policy. At the same time, the focus of the cryptocurrency industry shifted: the most resilient assets were not "pure" cryptocurrencies, but RWAs and other products tied to real assets and cash flow. Bitcoin: Under Pressure For the flagship product of the cryptocurrency market, Bitcoin, 2025 was a turbulent year. At the beginning of the year, with the launch of a US spot ETF, Bitcoin reached new highs as the market gained a legitimate and convenient channel for funds that had previously been outside the cryptocurrency market. Moreover, due to Trump's friendly attitude towards cryptocurrencies, Bitcoin was even seen as a "defensive" asset during market declines triggered by "Tariff Liberation Day." However, Bitcoin went through its typical pattern: strong news-driven rallies were quickly replaced by profit-taking and consolidation, with new drivers that could sustain its months-long rise slow to appear. At the time of writing, the trading price of Bitcoin is around $88,000, down about 6% from the beginning of the year, meaning that 2025 will close with about a 6% decline. This signals an important message for Bitcoin: even with ETFs, if demand for risky assets overall is weak, the market cannot guarantee growth. A key difference in 2025 is the demand structure. ETFs increased the participation of institutional investors and lowered entry barriers, but also made price dynamics more market-driven. Growth depends more on the inflow and outflow of funds and overall liquidity conditions. Ethereum: Lack of Growth Momentum In 2025, Ethereum failed to translate its technical advantages into price growth, falling by about 12% for the year, from a spring high to about $3,000. Unlike Bitcoin, which benefited from institutional investors driving market demand through ETFs and other means, Ethereum lacked similar catalysts for strong demand in the market. From an ecosystem perspective, network upgrades and Ethereum's central role in DeFi and Web3 infrastructure remain important, but in a low-risk preference environment, these are not enough to attract investors. For the market of 2025, these factors also seem insufficient: capital responses are not based on technological developments but on liquidity, regulatory transparency, and ease of access. Another factor is competition for investor attention. Some investment activities have shifted towards layer-two solutions and alternative blockchains, while Ethereum itself is increasingly seen as an infrastructure asset with unclear short-term investment prospects. Altcoins: The Weakest Sector In 2025, the altcoin market became the weakest part of the cryptocurrency sector. On average, altcoin values fell by about 42%, and the total market value of this sector almost halved in a year. Investors systematically reduced their investments in altcoins, turning their focus to more liquid tools. Even strong arguments failed to change the overall trend of the altcoin market. Individual ecosystems and tokens may periodically experience stimulation from on-chain activities, speculative waves, exchange product development, or their role in DeFi and RWA infrastructure. However, these stimulations are mostly short-lived and do not sustained growth. Lack of liquidity and reduced risk appetite, coupled with fundamentals, were not enough to prevent an overall outflow of funds from altcoins. Therefore, 2025 confirmed that altcoins are most reliant on excess liquidity and market optimism when these are lacking, the sector becomes one of the worst-performing of the year. In conclusion, why did cryptocurrencies lose money in 2025? Cryptocurrencies performed poorly in 2025 not because interest in the technology disappeared, but because the market changed its selection criteria. In a highly uncertain environment, funds primarily flowed into assets with more predictable liquidity and clearer risk profiles, while cryptocurrencies remained in the high-volatility risk category, making it difficult to allocate them reasonably in portfolios. The second factor is the fading of initial momentum. The ETF market performed strongly at the beginning of the year, but relying solely on exchange-traded products cannot create sustained demand. Without adequate liquidity and stable inflows of new capital, the market shifted to profit-taking and consolidation, with investors' attention turning to sectors with more transparent risk characteristics. The third factor is the internal weakness of the altcoin market. Even though some popular projects and trends emerged such as Solana, meme coins, individual ETFs or ETPs linked to altcoins, these trends were mostly short-term and did not develop into widespread patterns. Regulatory environment and technical risks further reinforced investors' choices of other asset classes. Ultimately, 2025 became a year where cryptocurrencies failed to demonstrate advantages over other investment tools in essential parameters crucial for large capital (demand stability, liquidity, and predictable risk). If the macroeconomic environment improves in 2026, risk appetite rebounds, the market may have a chance to recover but with stricter requirements for tool quality and demand structure.