According to external sources, the encryption market has recently receded, mainly due to macro-pressures and geographical tensions. The article mentions that after rising to a high of US$ 126,080 in October 2025, bitcoin then fell back by 50 per cent and market risk preferences decreased significantly.
The situation is considered the first variable.
According to the article, tensions between the United States and Iran have suffocated market sentiment. High energy prices, affected by conflict, also put pressure on the wider economy. It was reported that inflation rose to 4.2 per cent in the United States in May 2026, and that the Fed had chosen to maintain interest rates at a time when price pressures remained high.
For encrypted assets, interest rate maintenance is usually not conducive to risk asset performance. According to the source, if US-Iran relations are eased, market sentiment may improve and risk asset containment is expected to ease.
The progress of United States legislation has been noted
The article mentions that the United States may be close to passing through Clarity Act. The objective of the bill is to provide a clearer regulatory framework for the encryption industry and to enhance investor protection.
According to external sources, if regulatory expectations become clearer, particularly in the United States market, more funds may be attracted back into encryption, and the participation of retail investors may pick up.
ETF financial flows remain critical support
The report listed ETF flows as a third important condition. According to the article, over the past two years, ETF has become an important pillar of the encrypted market. In 2025, bitcoin and the Ethera were built up, and one of the important driving forces behind it was an increase in ETF purchases.
If the ETF requisition is re-enriched, the relevant spot asset prices may also be supported. The article also mentioned that bitcoin had been high in 2017, 2021 and 2025, so that the next high point could occur in 2029 if the pace of history continued.