A recent analysis published by Matrixport revealed that the increasing participation of institutional investors plays a key role in making the cryptocurrency market healthier and more sustainable.
Matrixport, in its analysis based on daily charts, noted that the total market capitalization of the cryptocurrency market was slightly over $1 trillion at the end of 2023, and has shown a steady increase to approximately $3.9 trillion by 2025. This growth was highlighted as a significant indicator of the market evolving into a more mature and resilient structure.
The analysis noted that each correction period remaining above the previous peak indicates a growing weight of institutional investors in the market and that their positions are becoming more stable. The entry of institutional funds into the market with long-term strategies contributes to a reduction in excessive volatility and a more balanced price movement.
Although the total value of the cryptocurrency market has recently experienced a limited pullback towards the $3 trillion level, Matrixport does not consider this a development that breaks the overall trend. On the contrary, it points to the increasingly high lows forming a strong foundation for the market.
According to Matrixport’s analysis, the cryptocurrency market could enter a new and significant bull run if macroeconomic pressures ease globally and financial conditions improve. With continued institutional participation, the sector is expected to become a more stable and reliable investment area in the long term.
*This is not investment advice.
