Haciyev Reşit 
The world’s largest cryptocurrency, Bitcoin, has been unable to deliver the strong rally investors have been anticipating for weeks. Price stagnation and low volatility have raised questions about whether the market is entering a new bear phase. Delays in expected regulatory clarity from the U.S. and weakening global risk appetite have created a general atmosphere of uncertainty in the crypto market.
Regulatory Uncertainty Weighs on the Market
The crypto market is currently experiencing low sentiment, largely due to delays in expected regulatory actions from the U.S. Senate. The stalling of the CLARITY Act discussions in Washington, closely monitored by Bitcoin and altcoin investors, has increased uncertainty and negatively affected overall market sentiment. The lack of a clear regulatory framework has made investors more cautious about opening new positions.
Weakening bipartisan support and the increasing complexity of the draft bill continue to pressure prices. This environment makes it harder for the market to find direction and may trigger a psychological process some investors describe as “capitulation.” Reduced risk appetite is causing short-term delays in recovery across both Bitcoin and altcoin markets.
Insights from John Wu of Ava Labs
John Wu, CEO of Ava Labs, discussed the current market situation and behind-the-scenes factors on The Wolf Of All Streets program. According to Wu, multiple factors are preventing the anticipated 2025 bull season from materializing. He highlighted the massive liquidation event on October 10, which cleared excessive leverage in the market, noting that its effects are still being felt:
“Leverage has been largely cleared, but we are still seeing losses coming to the surface.”
Alternative Investments Draw Attention Away from Crypto
Wu also pointed out that the stagnation in crypto is partly due to alternative investment opportunities. Renewed interest in AI stocks, prediction markets, and traditional financial instruments has diverted capital away from crypto assets. This has contributed to short-term lack of momentum in Bitcoin and altcoin prices while shifting market focus to other areas.
Despite price stagnation, Wu emphasized that institutional interest in crypto remains historically high. However, this interest is no longer solely focused on buying Bitcoin or altcoins. Institutions are increasingly viewing blockchain as a corporate technology infrastructure rather than just an investment vehicle. While this approach may not immediately impact prices, it signals long-term adoption potential.
Senate Disagreements Delay Progress
Wu identified a key reason for regulatory delays as the lack of coordination between Senate committees. Combining the roughly 600-page drafts prepared by the Finance and Agriculture Committees has slowed legal progress. Nevertheless, Wu argued that initiatives such as the Trump administration raising crypto topics on international platforms like Davos indicate that political will has not entirely disappeared.
Wu predicts that 2026 could look very different from 2025 for the crypto market. Bitcoin is expected to strengthen its role as a store of value, while the altcoin market may undergo a significant consolidation process. He stated:
“Thousands of non-functional projects will be eliminated, and only projects offering real use cases will survive.”
According to Wu, the market’s real “spark” could emerge in the second half of the year as regulatory clarity improves. The delayed rally in Bitcoin does not necessarily mean a bear market has begun. Regulatory uncertainty, post-liquidation recovery, and competition from alternative investments are the main factors pressuring prices. Continued institutional interest, however, provides a positive foundation for the market over the long term.
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