Bitcoin and Ethereum have faced a sharp decline over the past month, leaving investors questioning whether the world’s two leading cryptocurrencies are still a viable investment. Just a few weeks ago, Bitcoin traded above US$107,000 while Ethereum hovered around US$3,650. By mid-December, Bitcoin has slipped below US$90,000, with Ethereum retreating toward the low-US$3,000 range, raising concerns about the durability of recent gains. At the time of writing, Bitcoin is trading near US$88,700, while Ethereum sits around US$3,080, reflecting declines of nearly 2% and 1.6% respectively.
Industry insiders caution against interpreting the pullback as a market collapse. Chan Wei Chi, CEO of Kinetic DAX Sdn Bhd, formerly Tokenize Malaysia, described the decline as a normal correction following Bitcoin’s extraordinary multi-year rally from US$16,000 in early 2023 to a peak above US$120,000 in 2025. According to Chan, much of the recent sell-off stems from long-term investors taking profits, a routine occurrence in highly volatile asset classes.
Aaron Tang, Luno’s Asia Pacific General Manager, highlighted a convergence of factors contributing to the decline, including leverage-driven liquidations, outflows from Bitcoin ETFs, and moderated expectations for aggressive US Federal Reserve rate cuts amid a softening labor market. He emphasized that the downturn reflects both crypto-specific pressures and broader macroeconomic uncertainty, rather than a single triggering event.
Despite the volatility, both executives maintain that Bitcoin and Ethereum remain investable assets. Chan points out that the two cryptocurrencies still command a combined market capitalization exceeding US$2 trillion, underscoring the sector’s growing maturity. He advises long-term investors to focus on informed decision-making rather than short-term price swings. Tang echoes this perspective, urging investors to view crypto like any traditional asset class that cycles through periods of outperformance and underperformance. He also cautions against “get-rich-quick” expectations, noting Bitcoin’s historical outperformance since 2009 and its role as a portfolio diversification tool.
Looking toward 2026, volatility is expected to persist. Chan warns that global events will continue to drive short-term fluctuations across digital asset markets, while Tang points to the central role of monetary policy. He noted that the Fed’s recent 25-basis-point rate cut provided a brief boost to Bitcoin, but potential pauses in policy amid sticky inflation could keep the market in a state of uncertainty.
Stablecoins are also expected to play an increasingly practical role in the crypto ecosystem. Chan highlighted Bank Negara Malaysia’s Digital Asset Regulatory Sandbox as an indicator of growing openness to stablecoin innovation, particularly for enhancing efficiency and transparency. Tang emphasized stablecoins’ use in cross-border payments and remittances, supported by regulatory oversight, while cautioning that Bitcoin’s role as a mainstream payment method remains limited. Bitcoin is primarily a store of value, and widespread adoption as a transactional currency is unlikely over the next decade, according to both executives.
In summary, while Bitcoin and Ethereum have faced a sharp downturn, market experts stress that fundamentals remain intact. Investors who approach crypto with a long-term mindset, resist the lure of short-term speculation, and understand the inherent volatility may still find value in these flagship digital assets. The broader takeaway is that corrections are part of the market’s maturation process, and careful, informed investing remains the key to navigating the evolving crypto landscape.
