Bitcoin's 2025 Outlook: Smaller Drops, Altcoins Face 95% Loss

Crypto Market 2025: Expert Forecasts Smaller Downside for Bitcoin, But Altcoins Could Drop 95%

In the dynamic world of cryptocurrencies, experts are offering insights into the potential trajectory of the market by 2025. While Bitcoin may experience a smaller downside, altcoins could face significant losses, with some potentially dropping by up to 95%.

Real Vision's Raoul Pal, in an interview with The Paul Barron Network, shared his perspective on the current state of the market and the outlook for the remainder of the cycle. Pal is confident that we are still in the midst of the current bull cycle, and while it may take longer than expected, the market will eventually pick up.

Pal noted that institutional interest in the crypto space is growing, with players eagerly awaiting regulatory clarity. As this clarity emerges, more big players are expected to enter the market, potentially driving Bitcoin and other crypto assets higher. The key is that the market is still evolving and hasn't reached its peak yet.

According to Pal, we are still in the current cycle, which follows a global pattern. Previous cycles have been driven by the business and liquidity cycle, and this cycle won't be shorter. While things may seem slow right now, there's still time for the market to heat up, possibly pushing the cycle into 2026.

The presence of new players in the market, such as ETFs, might help reduce the downside risk in this cycle. Pal suggests that Bitcoin's downside could be smaller compared to previous cycles, potentially limiting drops to 45% or 50%. However, altcoins could still experience significant losses, some even dropping by as much as 95%.

Pal also emphasized the impact of macroeconomic factors on the crypto market. He argues that the success or failure of the bull run depends on larger economic conditions, such as inflation, liquidity, and the business cycle. As money flows through the economy, it will ultimately find its way into crypto. However, the market still needs to see institutional involvement fully ramp up.