The crypto market has had a turbulent few weeks. Bitcoin dropped sharply, the U.S. Senate failed to pass the CLARITY Act, and the Federal Reserve signaled a more hawkish stance on monetary policy. On paper, these headlines sound bearish. Yet according to André Dragosch, Head of Research Europe at Bitwise, the bull run is already underway.
In a recent interview, Dragosch explained why he remains confident about the trajectory of Bitcoin, Ethereum, and select altcoins heading into late 2025. Let’s break down his arguments.
Why the Bearish Headlines Don’t Tell the Full Story
News cycles in crypto tend to amplify short-term fear. A price dip, a failed bill, or a single Fed statement can feel like the end of the world. But seasoned investors look beyond the noise. Dragosch points to three structural forces that he believes are quietly powering the next leg of the bull run:
- Institutional demand
- The return of the debasement trade
- A rotation into Ethereum and selected altcoins
Each of these deserves a closer look.
1. Institutional Demand Is Stronger Than Ever
The biggest shift in crypto over the past two years has been the entrance of large institutional players. Spot Bitcoin ETFs in the United States have attracted tens of billions of dollars in inflows since launch. Pension funds, asset managers, and corporate treasuries are no longer treating Bitcoin as a curiosity. They are treating it as a strategic allocation.
Dragosch emphasizes that this institutional pipeline is sticky. Once an allocator decides to dedicate even 1% or 2% of their portfolio to Bitcoin, they tend to keep buying through volatility. This creates a constant bid under the market that simply did not exist in previous cycles.
For investors looking to gain exposure alongside these institutions, regulated platforms like Kraken offer a secure entry point with deep liquidity.
2. The Debasement Trade Is Back
The term debasement trade might sound technical, but the idea is simple. When governments print money or run large deficits, the purchasing power of traditional currencies like the dollar or the euro slowly erodes. Savers and investors naturally look for assets that cannot be printed or diluted.
Bitcoin has a fixed supply of 21 million coins. Gold has been the classic debasement hedge for centuries. Today, Bitcoin is increasingly seen as “digital gold,” and the debasement trade is once again driving capital into the asset. With U.S. debt levels at historic highs and major economies continuing to monetize spending, this tailwind for crypto is unlikely to fade soon.
What This Means for Regular Investors
You don’t need a hedge fund desk to participate. The same macro forces that push institutions into Bitcoin are pushing individual savers toward self-custody solutions. A hardware wallet like Ledger lets you hold your own coins independently, away from exchange risks. In a world of currency dilution, owning your own assets is a powerful position.
3. The Rotation Into Ethereum and Altcoins
In every crypto bull cycle, capital eventually rotates beyond Bitcoin. Historically, Ethereum leads the first wave of altcoins, followed by mid-cap projects and, at the peak, speculative bets on smaller tokens.
Dragosch believes this rotation has already begun. Ethereum’s growing role in tokenization, stablecoins, and decentralized finance makes it a natural beneficiary as institutional money matures. Beyond ETH, he highlights selected altcoins with strong fundamentals, particularly those tied to real-world use cases like payments, infrastructure, or on-chain finance.
For European investors interested in building a diversified crypto portfolio, platforms such as Bitvavo provide easy access to a wide range of assets with euro on-ramps.
The CLARITY Act Failure: A Setback, Not a Roadblock
The CLARITY Act was designed to define which U.S. regulator oversees digital assets. Its failure in the Senate disappointed many market participants who had hoped for clearer rules. However, history shows that crypto has thrived without comprehensive legislation in the past, and it can do so again. The market often prices in regulatory disappointment quickly, while continuing to focus on adoption, liquidity, and macro trends.
What Should You Do as an Investor?
Whether you are a beginner or an experienced trader, Dragosch’s outlook carries a few practical lessons:
- Zoom out. Short-term news rarely changes long-term trajectories.
- Focus on adoption. Institutional flows and real-world use cases matter more than headlines.
- Secure your assets. In any bull run, scams and exchange failures spike. Self-custody is essential.
- Diversify gradually. Let the rotation work in your favor across Bitcoin, Ethereum, and quality altcoins.
Conclusion: The Bull Run Is a Marathon, Not a Sprint
Corrections, failed bills, and tight monetary policy can all trigger panic in the short term. But the structural drivers behind this crypto cycle remain firmly in place: relentless institutional demand, the debasement trade, and an expanding ecosystem of useful blockchain applications. If Dragosch is right, the bull run is not a question of “if,” but of “how far.” Stay informed, manage your risk, and position yourself thoughtfully. The next chapter of crypto is being written right now.
