Gate.io CEO Dr. Han Says Crypto Market Has Entered Bear Phase

• Bitcoin trades near $66,500, almost 50% below its October peak above $126,000.
• The total crypto market cap has fallen from $4 trillion to around $2.4 trillion.
• Industry leaders highlight crypto payments and tokenized real-world assets as future growth drivers.

The cryptocurrency market is showing clear signs of a downturn after Bitcoin fell sharply from last year’s record highs, wiping out billions in market value and pushing the broader digital-asset sector into what industry executives describe as a bear-market phase.

Bitcoin recently traded near $66,500, down nearly 50% from its October peak above $126,000, after slipping about 1.5% in the latest trading session. Market data shows the decline represents one of the largest capitulation periods in the asset’s history, comparable to major sell-offs seen during previous crypto downturns.

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Market Value Shrinks Sharply

The wider cryptocurrency market has also contracted significantly. According to industry estimates, the total crypto market capitalization has fallen from around $4 trillion at last year’s peak to roughly $2.4 trillion, showing reduced investor activity and weaker market sentiment.

Dr. Han, founder and chief executive of Gate.io, said recent data indicates the industry has entered a bear market following the steep price declines that began after bitcoin’s late-2025 highs. He said that falling prices have also led to lower user participation and reduced trading interest across many platforms.

“At this point of time, we can say yes, we are getting into the bear market,” he said.

Bear Markets Still Create Opportunities

Despite the downturn, industry leaders say bear cycles often lay the groundwork for the next growth phase. Dr. Han pointed to several sectors that continue to expand even during the correction, including crypto payment cards, which are seeing rising adoption, and tokenized real-world assets (RWAs) such as digital versions of gold, commodities, foreign exchange instruments and traditional financial securities.

Assets under management in these tokenized sectors have continued to grow, signaling ongoing institutional experimentation with blockchain-based financial products even as prices decline.

Preparing for the Next Cycle

The current phase is likely to remain volatile in the near term, but historically such downturns have been followed by new technological developments and adoption waves that eventually support the next bull market. The expert said that continued innovation, particularly in payments, tokenized assets and blockchain-based financial infrastructure, could play a central role in driving the next recovery once broader market conditions improve.

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