Trading analysts identify primary challenge facing the cryptocurrency market., 2026/02/24 18:00:30

The primary challenge facing the cryptocurrency market this year has been the intensification of deglobalization and stagflation, according to analysts from the trading firm Wintermute.

As stated by trading experts, major investment funds have begun to question the profitability of artificial intelligence. Commodities continue to rise in price, and supply chains are increasingly becoming fragmented, noted Wintermute.

“Capital is shifting towards defensive and tangible assets: gold, silver, defense companies, and other industrial sectors. Cryptocurrencies are losing appeal alongside the technology sector of the economy, as they are perceived as too risky,” the analysts explained.

The influence of the U.S. Federal Reserve (Fed) is diminishing; the American central bank is unable to ease its policy due to persistent inflation and cannot raise interest rates on loans as the economy slows down.

Bitcoin has failed to maintain a position near the $70,000 mark, and the weak response from investors and traders to the downturn indicates their uncertainty. Demand is not recovering, and capital outflows from spot Bitcoin ETFs continue, according to Wintermute specialists.

The surge in interest towards altcoins was short-lived. Until risk appetite returns, it is futile to expect a resurgence of bullish demand in the cryptocurrency market—the likelihood of continued stagnation is extremely high, suggested trading analysts.

Previously, the chairman of Strategy, Michael Saylor, speculated that the recovery of the Bitcoin market could take between two to seven years.