Analyst Predicts “Great Depression” in the Crypto Market: What to Expect in 2025–2026
Popular crypto analyst Capo Of Crypto recently shared a grim forecast for the digital asset market in a tweet. He warns of an impending global economic crisis that could lead to a “Great Depression” in the cryptocurrency industry. According to the expert, events may mirror the scale of the 1929 crisis, accompanied by a radical “reset” of the financial system.
Short-Term Outlook: Hope and Risk
Capo Of Crypto divided his forecast into several time phases, starting from the coming days through the end of 2026.
Next Few Days (Up to One Week):
Bearish market sentiment has temporarily eased thanks to a 90-day delay in the implementation of tariffs by President Donald Trump. This has allowed Bitcoin (BTC) to rise to the $92,000–98,000 range, with some altcoins surging 50–100%. However, the analyst cautions that this is merely a “technical recovery,” not the start of a new bullish wave.
Following Weeks:
The market will likely face another wave of investor capitulation. Potential triggers include:
- Renewed tariff discussions or escalations;
- Geopolitical conflicts (e.g., escalation of the Taiwan crisis);
- A new wave of pandemic-related fears;
- Regulatory crackdowns on the crypto industry.
“These factors could trigger a mass flight from risk assets, including crypto,” the analyst notes.
Fall 2025: Beginning of a Bear Market
The biggest blow, according to the forecast, is expected in September 2025. By that time, Capo Of Crypto expects a global economic reset to begin, including the transition to central bank digital currencies (CBDCs), ISO 20022 standards, and new financial instruments.
He believes this process will inevitably lead to a catastrophic crash in the crypto market. “This is not just a correction, but a full-scale depression. The market will return to basic levels, and many projects will disappear,” the expert warned.
September may also bring an “altseason” for select coins, but it won’t save the market from an overall decline. “Some altcoins will retest their highs, but it will be an illusion. In the long run, everything will end up in the red,” the analyst added.
2026: Global Crisis and the Future of Digital Assets
By 2026, Capo Of Crypto believes the world will face the first global financial crisis in crypto history. He compares it to the Great Depression of the 1930s but with modern elements:
- Crypto asset prices fluctuating by hundreds of percent;
- A sharp drop in total market capitalization;
- Investors fleeing to safe-haven assets like gold and fiat reserves.
The expert cites the views of Ray Dalio (founder of Bridgewater Associates), who recently warned of a collapse in the current monetary-economic system. “Dalio is right: the noise around tariffs is a distraction from the main issue — we are entering an era of tectonic shifts,” Capo Of Crypto agreed.
Market Reaction and Alternative Views
Not everyone shares the analyst’s pessimism. For instance, Bernstein highlights Bitcoin’s “impressive resilience” during trade wars, comparing it to previous crises. Investors are also hoping crypto can act as a hedge against inflation and instability.
However, Capo Of Crypto stresses: “Even if Bitcoin maintains dominance, its volatility will reach record levels. Investors should brace for extreme swings and potential losses.”
Key Risks and Recommendations
The analyst identified the following key risks for the crypto market:
- Global recession — a drop in GDP in the U.S. and China could crash demand for risky assets;
- Regulatory tightening — Western and Asian countries are likely to increase control over crypto transactions;
- Technical factors — an oversold market could lead to “bear traps” amid falling prices.
Recommendations for Investors:
- Reduce crypto holdings to 5–10% of portfolio;
- Buy only “solid” coins (e.g., BTC, ETH) during downturns;
- Avoid altcoins without clear use cases.
Conclusion: A Battle for Survival
Capo Of Crypto’s forecast is not just a warning but a challenge for the industry. If cryptocurrencies survive a global crisis, they could become a new “digital gold standard.” However, to do so, the market must endure a brutal test:
- Prove resilience to macroeconomic storms;
- Implement technologies for mass adoption;
- Outperform CBDCs and traditional financial tools.
In any case, the next 18 months could determine whether crypto becomes part of the future or remains “an experiment that failed.”