The crypto boom of 2025 didn't just peak — it overheated.
And according to Freedom Capital Markets Chief Market Strategist Jay Woods, one of the biggest accelerants was the sheer number of powerful figures piling into the trade, including President Donald Trump and his family. Their involvement, he told Benzinga, helped turn crypto into one of the most crowded trades of the year — and that overcrowding is now casting a long shadow over 2026.
"That became such a crowded trade," Woods told Benzinga of crypto. "We had too many people in high places, including the president of the United States and his family, getting involved."
Major cryptocurrencies, including Bitcoin (CRYPTO: BTC), hit new all-time highs in 2025, only to plunge back in recent months amid forced liquidations of overleveraged positions and a broader investor pullback from risky assets.
Crypto Outlook 2026
While Woods didn't directly link the late‑2025 crypto crash to the investor frenzy that preceded it, he made clear that the technical damage now visible across major charts reflects just how overheated the space became.
And that damage, he warned, won't be quick to repair.
"I think crypto will struggle to make new highs in 2026," Woods said.
He has shared his prediction for the S&P 500 with Benzinga and picked a few Magnificent Seven stocks to watch in 2026. When it comes to cryptocurrency, Woods will likely be on the sidelines for 2026.
Read Also: Donald Trump’s 2025 Crypto Playbook: Here’s Every Major Move He Made
`A Lot Of Damage Done’
Woods told Benzinga that fundamentals offer little clarity right now, leaving the technical picture to tell the story. And that story, he said, is one of a market that needs time. "We've seen a lot of damage done technically and it will take time for Bitcoin and Ethereum and Solana to get back on that uptrend."
There is one potential stabilizing force for major cryptocurrencies like Bitcoin, Ethereum (CRYPTO: ETH) and Solana (CRYPTO: SOL): consolidation. For Bitcoin specifically, Woods believes the market needs to settle before any meaningful recovery can begin.
"I still think we need to see some consolidation here around the $90,000 level in Bitcoin," he said. Only after that, he added, could the market get an "all clear" and "march to new highs."
Until then, Woods' message is clear: after a year defined by overcrowding — even at the highest levels of power — crypto enters 2026 on the defensive.
Bitcoin Price Action
Bitcoin trades at $87,905 at the time of writing. The leading cryptocurrency has traded between $74,436.66 and $126,198.07 over the last year, hitting new all-time highs of $126,198.07 on Oct. 6, 2025.
Bitcoin is down 5.9% year-to-date in 2025.
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© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
