Bitcoin (BTC) reached a new all-time high above $126,000 in October, yet at the time of writing, it was trading near $88,000.
This significant retreat highlights a deeper truth: headline highs have masked a deeply fractured market where most cryptocurrencies have been left in a prolonged chill.
A Stark Divergence in Performance
Analytics platform SoSoValue’s recent review of the 2024-2025 period quantified this split with a clear experiment. What would happen to $10 invested across major crypto sectors at the cycle’s start in early 2024?
The results are sobering. As SoSoValue stated,
“Two years later, the answer is stark: That same $10 starting point turned into $28 in some pockets, while in others, only $1.20 remains.”
The firm defined the period as a “belated, cruel coming-of-age ceremony” for crypto, where selective capital, not broad optimism, drove outcomes.
According to the study, the key catalyst was the January 2024 approval of spot Bitcoin ETFs. While hailed as a landmark, it created a “compliance loop” that isolated institutional money.
“ETFs broke this chain,” SoSoValue explained. Capital now flows into regulated products and stays there, rarely trickling down to the wider ecosystem.
This erected a strict “boundary of allocatable assets.” The platform’s data shows U.S. Bitcoin ETFs hold roughly $115 billion, dwarfing Ethereum’s $18 billion. The firm reported that other approved tokens received minimal institutional interest, disrupting the historical trend where Bitcoin’s strength benefited everyone.
Winners, Losers, and a Market Transformed
The experiment revealed a market divided into clear camps, with sectors tied directly to compliant capital or dominant market positions thriving.
Centralized finance (CeFi), powered by Binance’s BNB, gained over 180%, while assets like XRP, with cleared regulatory hurdles, also excelled.
In stark contrast, sectors reliant on venture capital narratives and retail speculation faced a wipeout. Layer-2 networks fell 87%, GameFi dropped 85%, and NFTs declined 68% from the $10 baseline.
SoSoValue pointed to the collapse of the “VC cabal — tech narrative — high valuation financing” model, where constant token unlocks from early backers met zero new demand.
Even meme coins, a traditional retail refuge, offered little safe harbor. While the sector’s index nearly broke even over two years, it hid a punishing 80% fall in 2025 alone, transformed into a “highly efficient ‘harvesting machine’” by celebrity and political pumps.
Bitcoin’s journey from its October high to current levels mirrors this new reality. According to SoSoValue, its record peak was a product of concentrated institutional inflow through ETFs, a strength that did not spread.
The subsequent cooling reflects both natural market cycles and the absence of a vibrant, capital-flushed altcoin ecosystem to sustain momentum. However, per the analytics company, the bull market’s riches were not shared; they were funneled into a narrow corridor, leaving the rest of the market to question what comes next in an era that’s slowly being defined by rigor over rumor.
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