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Bitcoin and Ethereum Face First Downturn Since 2022, But Cantor Says Don't Panic Yet

MarketDash Editorial Team
3 hours ago
Cantor sees 2025 as a turning point for crypto regulation and institutional adoption, even as the market enters its first meaningful correction since 2022. The firm maintains a long-term bullish outlook despite near-term headwinds.

It's been a good run, but Bitcoin (BTC) and Ethereum (ETH) are on track for their first losing year since 2022. Not exactly the news crypto enthusiasts wanted to hear, but asset management firm Cantor says there's reason to stay optimistic about the long game.

In its 2026 outlook, Cantor acknowledges what everyone's feeling: despite stronger fundamentals and improving policy clarity, fears around Bitcoin's notorious four-year cycle and a challenging macroeconomic environment are dragging prices down. The current vibe? Early crypto winter.

Here's the thing though. Cantor still sees Bitcoin as structurally bullish over the long term. The short-term pressure is real, and if history repeats itself, we might still be in the early innings of this downturn. Translation: it could get worse before it gets better.

The Bright Spots

But it's not all doom and gloom. Cantor highlighted several promising trends that suggest the crypto ecosystem is maturing, even as prices stumble:

Stablecoin supply grew more than 50% in 2025. That's massive. While Cantor expects growth to slow in 2026, they don't see it reversing, which signals continued demand for dollar-pegged digital assets.

Tokenized real-world assets are having a moment. The sector exploded from $5.9 billion to $18.5 billion in 2025, and Cantor thinks it'll blast past $50 billion in 2026. This is one of the strongest secular growth stories in crypto right now.

Prediction markets are emerging as a legitimate growth area, with volumes nearly tripling year over year. Sports betting adoption is driving most of that surge.

Ethereum might actually hold up better than you'd think. Cantor noted ETH's dominance in stablecoins, tokenization, and layer-2 networks. They view rising on-chain activity as similar to earnings growth, which could support valuations even during a downturn.

Regulation Finally Getting Clarity

Global crypto mergers and acquisitions smashed records in 2025, hitting $8.6 billion compared to just $2.17 billion in 2024. Cantor credits the surge to a more crypto-friendly regulatory stance under the Trump administration and increasing policy clarity in the U.S.

Looking ahead, Cantor expects the Digital Asset Market Clarity Act to pass in 2026. That would create clearer distinctions between securities and commodities, reducing the enforcement-driven uncertainty that's plagued the industry. The result? Potentially faster institutional participation, broader real-world asset adoption, and convergence between centralized and decentralized markets.

There's a catch, though. Cantor expects digital asset treasury accumulation to slow significantly in 2026 as valuation premiums compress and sentiment stays cautious. Instead of aggressively stockpiling tokens, companies are likely to focus on buybacks, M&A activity, and strategic ecosystem investments until the bulls come back.

So yes, crypto is entering its first meaningful downturn since 2022. But the underlying infrastructure keeps getting stronger, regulation is finally catching up, and institutional money isn't running away. Sometimes the best progress happens when nobody's watching the price.

Back to Stock Market News

Bitcoin and Ethereum Face First Downturn Since 2022, But Cantor Says Don't Panic Yet

MarketDash Editorial Team
3 hours ago
Cantor sees 2025 as a turning point for crypto regulation and institutional adoption, even as the market enters its first meaningful correction since 2022. The firm maintains a long-term bullish outlook despite near-term headwinds.

It's been a good run, but Bitcoin (BTC) and Ethereum (ETH) are on track for their first losing year since 2022. Not exactly the news crypto enthusiasts wanted to hear, but asset management firm Cantor says there's reason to stay optimistic about the long game.

In its 2026 outlook, Cantor acknowledges what everyone's feeling: despite stronger fundamentals and improving policy clarity, fears around Bitcoin's notorious four-year cycle and a challenging macroeconomic environment are dragging prices down. The current vibe? Early crypto winter.

Here's the thing though. Cantor still sees Bitcoin as structurally bullish over the long term. The short-term pressure is real, and if history repeats itself, we might still be in the early innings of this downturn. Translation: it could get worse before it gets better.

The Bright Spots

But it's not all doom and gloom. Cantor highlighted several promising trends that suggest the crypto ecosystem is maturing, even as prices stumble:

Stablecoin supply grew more than 50% in 2025. That's massive. While Cantor expects growth to slow in 2026, they don't see it reversing, which signals continued demand for dollar-pegged digital assets.

Tokenized real-world assets are having a moment. The sector exploded from $5.9 billion to $18.5 billion in 2025, and Cantor thinks it'll blast past $50 billion in 2026. This is one of the strongest secular growth stories in crypto right now.

Prediction markets are emerging as a legitimate growth area, with volumes nearly tripling year over year. Sports betting adoption is driving most of that surge.

Ethereum might actually hold up better than you'd think. Cantor noted ETH's dominance in stablecoins, tokenization, and layer-2 networks. They view rising on-chain activity as similar to earnings growth, which could support valuations even during a downturn.

Regulation Finally Getting Clarity

Global crypto mergers and acquisitions smashed records in 2025, hitting $8.6 billion compared to just $2.17 billion in 2024. Cantor credits the surge to a more crypto-friendly regulatory stance under the Trump administration and increasing policy clarity in the U.S.

Looking ahead, Cantor expects the Digital Asset Market Clarity Act to pass in 2026. That would create clearer distinctions between securities and commodities, reducing the enforcement-driven uncertainty that's plagued the industry. The result? Potentially faster institutional participation, broader real-world asset adoption, and convergence between centralized and decentralized markets.

There's a catch, though. Cantor expects digital asset treasury accumulation to slow significantly in 2026 as valuation premiums compress and sentiment stays cautious. Instead of aggressively stockpiling tokens, companies are likely to focus on buybacks, M&A activity, and strategic ecosystem investments until the bulls come back.

So yes, crypto is entering its first meaningful downturn since 2022. But the underlying infrastructure keeps getting stronger, regulation is finally catching up, and institutional money isn't running away. Sometimes the best progress happens when nobody's watching the price.