Bitcoin Performance Analysis in 2025: The New Balance Between Institutionalization and Risk-Return

【Crypto World】The performance of Bitcoin in 2025 seems to have fallen short of market expectations, and multiple factors are at play behind this. Recently, industry investors have analyzed this phenomenon from various perspectives: Bitcoin’s decline is not caused by a single reason but is the result of the superposition of multiple trends.

One key shift is the involvement of traditional finance, which has changed the rules of the game. As Bitcoin gradually becomes part of the mainstream financial system, a group of early long-term holders are beginning to reduce their positions. This institutionalization process itself is a form of recognition and also brings about changes in liquidity.

However, it is worth noting that the current risk level faced by Bitcoin has hit a historic low. This decentralization has extended from retail investors to large Wall Street institutions across the entire ecosystem. In the face of multiple economic crises, Bitcoin has demonstrated considerable resilience and risk resistance.

But on the other side of the coin is that reduced risk often comes with adjustments in return expectations. Although industry insiders generally remain optimistic about Bitcoin’s performance over the next decade relative to stock market indices, reproducing the past annual compound growth rate of over 80% is essentially unrealistic. This is a natural result of market maturation.

It is worth mentioning that some investors have revealed that they increased their Bitcoin holdings in 2025. They quoted a classic investment adage to explain this decision: “True wealth comes from having enough patience to wait, rather than frequent trading.” This mindset seems particularly interesting in the current market environment.