The cryptocurrency market is experiencing a period of low sentiment as the expected regulatory clarity steps from the US Senate slow down.
Appearing on “The Wolf Of All Streets,” Ava Labs President John Wu discussed the current state of the market and the behind-the-scenes activities of various companies.
The impasse in Washington regarding the Clarity Act, eagerly awaited by investors in the Bitcoin and altcoin markets, has created a sense of “capitulation” across the market. Weakening bipartisan support and the complexity of the bill continue to put pressure on prices.
Ava Labs President John Wu, analyzing the reasons for the market slump, attributed the failure to deliver the expected “bull season” performance of 2025 to several factors. Wu specifically noted that the large liquidation event on October 10th cleared leverage from the system, but “the damage is still surfacing.”
He also added that alternatives such as AI stocks and prediction markets are dividing interest in crypto assets.
Despite the “sluggish” price movements, John Wu stated that institutional interest in the sector is higher than ever. According to Wu, institutions are now interested not only in crypto assets but also in using blockchain as an enterprise technology.
John Wu attributed the slow pace of regulation to disagreements between Senate committees. He said that the nearly 600-page drafts submitted by the Finance Committee and the Agriculture Committee needed to be combined, which prolonged the process. However, Wu argued that the fact that the Trump administration raised the issue of crypto at platforms like Davos was still a strong indication of its will.
Wu predicts that 2026 will be very different from 2025. He specifically states that Bitcoin will solidify its position as a store of value, but a consolidation process is inevitable in the altcoin market, where “thousands of worthless projects” will be eliminated. According to Wu, the real “spark” in the market could come in the second half of the year with increased regulatory clarity.
*This is not investment advice.
