Bitcoin and Ethereum have taken a sharp hit of late and investors are asking the hard question: Are the world’s two biggest cryptocurrencies still worth investing in?
Barely a month ago, Bitcoin was trading north of US$107,000 while Ethereum hovered around US$3,650. Fast forward to mid-December, Bitcoin has slipped below the US$90,000-mark, while Ethereum has retreated closer to the low-US$3,000 range, a sobering reversal that has rattled short-term confidence.
Yet industry leaders argue the plunge is less a collapse and more a textbook correction.
What triggered the plunge?
According to Kinetic DAX Sdn Bhd, formerly known as Tokenize Malaysia, Chief Executive Officer Chan Wei Chi, the pullback should be viewed in the context of Bitcoin’s massive multi-year rally from US$16,000 in early 2023 to a peak above US$120,000 in 2025.
The recent downturn, he said, was largely driven by long-term investors taking profits, a common feature in highly volatile asset classes.
Meanwhile, Luno’s Asia Pacific General Manager Aaron Tang explained that the sell-off was amplified by several interconnected forces: Leverage-driven liquidations, significant Bitcoin ETF outflows and cooling expectations of aggressive US Federal Reserve (Fed) rate cuts amid signs of labour-market weakness.
“The reversal wasn’t caused by a single event. It was a convergence of crypto-specific pressures and broader macroeconomic uncertainty,” Tang noted.
At the time of writing, Bitcoin has slipped nearly 2%, hovering around US$88,700, while Ethereum has eased about 1.6% to trade near US$3,080.
On the hard question of whether crypto is still investable, both executives maintain that Bitcoin and Ethereum remain investable with the right mindset despite the sharp pullback.
Chan pointed out that Bitcoin and Ethereum still command a combined market capitalisation exceeding US$2 trillion, underscoring the sector’s growing maturity.
For investors with a long-term horizon, he said, the focus should be on informed decision-making rather than short-term price swings.
Echoing the same view, Tang stressed that crypto should be treated like any other asset class; one that cycles between periods of outperformance and underperformance.
He also pushed back against the “get-rich-quick” narrative, noting that Bitcoin has historically outperformed all major asset classes since its inception in 2009 and is increasingly used as a portfolio diversification tool.
The Outlook: Volatility Isn’t Going Away
Looking ahead into 2026, both Chan and Tang highlighted that volatility is expected to persist, with Chan warning that global events will continue to drive short-term fluctuations across digital asset markets.
Meanwhile, Tang highlighted the role of monetary policy, noting that while the Fed’s recent 25-basis-point rate cut briefly lifted Bitcoin prices, the central bank has also signalled a possible pause as inflation remains sticky.
“As such, the market is caught between easing financial conditions and lingering macro uncertainty,” Tang.
Stablecoins And The Future Of Crypto Payments
Separately, both executives see stablecoins playing a more immediate and practical role than Bitcoin as a payment instrument.
Chan noted that Bank Negara Malaysia’s Digital Asset Regulatory Sandbox signals growing openness toward stablecoin innovation, particularly in improving efficiency and transparency across industries.
Tang, on the other hand, said the industry has long championed stablecoins for cross-border payments and remittances, placing them squarely under the central bank’s regulatory oversight.
As for whether Bitcoin could become a mainstream payment method in the next decade, opinions are cautious. Chan does not see Bitcoin evolving into a practical payment tool, especially as stablecoins mature over the next 10 to 15 years.
Tang acknowledged that while some companies already accept Bitcoin, widespread adoption remains uncertain given its dominant role as a store of value rather than a transactional currency.
Bottom line: Bitcoin and Ethereum may be bruised, but industry leaders say the fundamentals remain intact, provided that investors are prepared for volatility and resist the temptation to mistake crypto for a shortcut to riches.
