According to @CryptoMichNL, the cryptocurrency market showed a stark divergence in the first half of 2025, with the total market capitalization growing a mere 3% to $3.27 trillion. This figure masks the underlying market dynamics, where Bitcoin (BTC) surged 13%, effectively propping up the market. In contrast, major altcoins suffered significant losses, with Ethereum's ether (ETH) falling 25%, Solana (SOL) dropping nearly 17%, and an index of smaller altcoins plunging 30%. Looking ahead, analysts present conflicting views. Joel Kruger of LMAX Group is optimistic, citing July's historically strong performance for crypto and an expanding corporate treasury trend beyond BTC to assets like ETH. Similarly, Coinbase analysts anticipate a positive second half driven by a favorable macroeconomic environment, potential Federal Reserve rate cuts, and increasing U.S. regulatory clarity. However, analysts at Bitfinex have issued a caution, warning that the upcoming quarter is historically the weakest for Bitcoin, which could lead to prolonged range-bound price action and subdued volatility.

According to Coinbase Research, the crypto market has a constructive outlook for the second half of 2025, with Bitcoin (BTC) expected to rally due to several key factors. The report highlights an improving U.S. macroeconomic backdrop, evidenced by the Atlanta Fed’s GDPNow tracker jumping to 3.8% QoQ, which eases recession fears. This, combined with expectations of Federal Reserve rate cuts and declining dollar dominance, is anticipated to boost Bitcoin's appeal as an inflation hedge. While BTC is positioned to benefit from these tailwinds, the report suggests altcoins may lag unless driven by specific catalysts like ETF approvals. Corporate adoption is another positive driver, with more companies adding crypto to their balance sheets under new 'mark-to-market' accounting rules, though this introduces systemic risks related to convertible debt financing. Furthermore, significant regulatory developments, including the GENIUS Act and the CLARITY Act, alongside over 80 pending crypto ETF applications, are expected to provide much-needed clarity and could fuel market growth.