Crypto Price News: Despite the Crash, Fundamentals Are Still Bullish

Key Points

• Cryptocurrencies have experienced a sharp decline since the October 10 flash crash.
• The total market cap of cryptocurrencies is down 46% from its all-time high.
• Despite the crash, the fundamental narratives supporting the market remain intact.

Market Overview

Nearly $2 trillion has been lost from the crypto market in about four and a half months, leading to a 47% loss for investors who bought at the peak. The recent crash was triggered by President Trump's tariff hikes on China, which led to a wave of liquidations, erasing over $16 billion in long positions in a matter of hours.

Despite the turmoil, Bitcoin's reputation remains strong, and the concept of decentralized finance (DeFi) is gaining traction beyond niche communities.

Key Trends Analyzed

1. Exchange-Traded Funds (ETFs)

In 2025, a surge of crypto-linked ETFs became available, allowing both retail and institutional investors to access regulated products. The total assets under management (AUM) for these products peaked at around $260 billion but have since decreased to $132 billion, with a net outflow of $1.3 billion in 2026.

2. Tokenized Real-World Assets (RWAs)

Despite the downturn, the market for tokenized assets continues to grow, with the total market value of RWAs increasing from $21.2 billion to $24.9 billion in just two months. Tokenized gold products now represent a significant portion of this market.

3. Gold vs. Bitcoin

Bitcoin's performance diverged significantly from gold in 2025, with gold gaining 65% while Bitcoin fell by 6%. This trend continued into 2026, with gold up 16% and Bitcoin down 23%, indicating that Bitcoin is not yet viewed as a safe haven asset.

4. Correlation with Other Markets

Bitcoin has shown a lack of correlation with traditional assets like gold and tech stocks. While the Nasdaq 100 rose by 20% in 2025, Bitcoin declined, reinforcing its identity as a distinct asset class.

Conclusion: Are Cryptos Still a Good Investment in 2026?

Despite the recent crash and negative sentiment, the underlying fundamentals of the crypto market remain strong. Institutional interest in ETFs is robust, the tokenization of assets is thriving, and Bitcoin is carving out its own identity separate from gold. The current market conditions may present a unique buying opportunity rather than signaling the end of the crypto era.