As we close out 2025, the crypto market is looking quite distinct. A recent report from Glassnode reveals that only 5% of the top 500 altcoins are currently in the green, while Bitcoin’s profitability has dropped sharply. It’s a shift from the norm, where Bitcoin and altcoins typically danced together during bear markets. Bitcoin’s price has fallen to around $95,625.85, marking a 12.27% decrease over the past month.
What does this mean for altcoins?
What’s evident is that this decoupling is impacting liquidity and investor sentiment. With Bitcoin’s profitability dwindling, startups and investors are reevaluating their approaches to altcoins. The allure of altcoins that are holding steady in a bear market is strong. They might be the better option for transactional use cases, including payroll.
It’s a strange time. This could open doors for altcoins that offer lower transaction costs and faster settlements. With Bitcoin’s network congestion at all-time highs, altcoins are becoming more appealing. Add rising interest in decentralized finance (DeFi) and blockchain technology, and you have the perfect storm for altcoin adoption.
What will the regulators do?
Regulators will likely respond with tailored frameworks for Bitcoin and altcoins. Bitcoin is increasingly seen as a “safe haven” with clearer guidelines, while altcoins remain well within the realm of volatility.
Expect to see:
- Stricter operational risk management: More compliance requirements for altcoins to protect investors from fraud and manipulation.
- Different investor protection measures: Proposals to limit exposure to riskier altcoins while easing restrictions on Bitcoin firms.
- Market classification changes: Bitcoin and altcoins will be formalized as distinct asset classes.
These changes will balance innovation with consumer protection, ensuring a safer environment in the fast-evolving cryptocurrency market.
How are fintech startups responding?
Fintech startups are adapting quickly to optimize their crypto banking strategies. Here’s how:
- Regulatory sandboxes: Startups in Thailand and Malaysia are taking advantage of sandboxes to test solutions with reduced compliance risks.
- Advanced tech: Incorporating blockchain and AI to enhance efficiency and user experience.
- Compliance and governance: Strengthening governance to build trust and reduce regulatory friction.
- User-centric design: Innovating user-friendly platforms that integrate crypto features to appeal to younger demographics.
These strategies help startups not just survive, but also thrive in the ever-changing landscape of the cryptocurrency ecosystem.
What’s next for crypto payroll?
With the crypto market changing, startups are rethinking how to handle payroll. Bitcoin’s declining profitability is driving many to consider altcoins and stablecoins for employee compensation. It’s a calculated move towards stable, predictable payments.
Here’s what to look for:
- Stablecoins gaining traction: Many startups are opting for stablecoins for payroll, offering the benefits of crypto without the volatility.
- Faster processes: Blockchain tech is enabling quicker, cheaper cross-border payments, reducing admin costs.
- Emerging trends: The rise of stablecoins as a preferred method reflects a trend towards stability and efficiency over speculation.
As Bitcoin’s profitability wanes, startups are looking to altcoins and stablecoins for payroll solutions. By adapting to regulatory frameworks and technological advances, fintech startups can not only survive but thrive as the crypto landscape evolves.
