Bitcoin May Drop, But Crypto is Here to Stay, Experts Say
Boston, December 5, 2025 — Despite recent declines in Bitcoin’s value, Northeastern University cryptocurrency experts affirm that the broader crypto market remains resilient and poised to endure as a fixture in the global financial landscape.
Bitcoin reached an unprecedented peak on October 6, 2025, hitting around $126,000 after an impressive 33% rise throughout the year. However, that high was followed by significant volatility. By the end of October, Bitcoin’s price had fallen approximately 14%, then dipped another 17% in November. The cryptocurrency’s rollercoaster ride continued in early December with a 7% drop on the first day, partially reversed by a 7% gain the next.
Understanding the Volatility
Ravi Sarathy, professor of international business and strategy, and Alper Koparan, assistant teaching professor of finance at Northeastern University, attribute these fluctuations to a combination of macroeconomic influences and Bitcoin’s inherent volatility.
“More than not, there is an overenthusiasm for all things crypto,” Sarathy notes, highlighting that market exuberance often drives price swings beyond fundamentals.
Bitcoin, originally created in the aftermath of the 2008-2009 Great Recession as a decentralized, peer-to-peer digital currency, is distinct in its features. Its demand currently outpaces supply, and with a capped total supply of 21 million coins—the cryptocurrency is rapidly approaching this limit—scarcity plays a key role in price movements.
Additionally, cryptocurrencies operate independent of any national currency and are accessible globally via blockchain technology, which records transactions on a decentralized digital ledger. This openness, combined with limited regulatory oversight, fosters an environment ripe for speculation. Traders routinely engage in buying with hopes for quick profits, short-selling, or leveraging Bitcoin holdings to invest further, activities that amplify price swings.
“That’s really where I think the big, big volatility comes from,” Sarathy explains.
Shifts in Institutional Investment
While individual investors have long played a significant role in the crypto markets, institutional participation has grown considerably in recent years. Under the prior Trump administration, regulatory attitudes shifted to be more favorable toward cryptocurrencies and blockchain-based ventures, encouraging large institutional investments via crypto-linked exchange-traded funds (ETFs).
However, recent months have seen a reversal. Institutional investors have withdrawn funds, opting for safer assets like gold and silver amid turbulent market conditions.
Koparan points out that October and November were marked by negative institutional flows from ETFs, signaling a cautious retreat from riskier investments like Bitcoin.
Macroeconomic Factors at Play
Global financial dynamics also are influencing cryptocurrency valuations. The Bank of Japan is expected to raise interest rates from its longstanding near-zero levels, while the U.S. Federal Reserve is anticipated to cut rates. These contrasting monetary policies could disrupt “carry trades,” a popular investment strategy involving borrowing in low-interest-rate currencies and investing in higher-yield ones.
“In such a situation, investors may interpret this as a warning sign and typically exit high-risk assets like Bitcoin,” Koparan says.
The Road Ahead: Crypto’s Endurance
Despite current volatility and institutional pullback, experts maintain an optimistic view about the longevity of cryptocurrencies.
“Cryptocurrency markets, I believe those markets will be there forever, regardless of the price of Bitcoin,” Koparan states. “It’s like a playground for individual investors. It’s something you can do over the internet without any limitations or restrictions. That activity will continue.”
Sarathy echoes this sentiment, emphasizing Bitcoin’s resilience through past market shocks, including the FTX collapse in November 2022. He notes that although Bitcoin’s price has declined from its recent highs to about $91,000, the long-term trajectory remains impressive.
“In about 15 years, Bitcoin has grown from zero to over $120,000 — and even now at $91,000, that’s still pretty amazing,” he concludes.
As the cryptocurrency landscape continues to evolve amidst regulatory changes and global economic fluctuations, the consensus among Northeastern experts is clear: while Bitcoin’s price may rise and fall, the crypto ecosystem is built to persist.
Reporting by Cyrus Moulton, Northeastern Global News. For inquiries, contact [email protected] or follow @MoultonCyrus on X (Twitter).