WhiteBIT CEO: crypto pullback is not a crisis but a temporary correction

The crypto market has dropped nearly 30% since early October – about $1.2 trillion in total market capitalization – in a slide that Volodymyr Nosov describes as a “temporary correction” rather than a systemic break in an opinion piece published by CryptoSlate. He added that crypto is usually sold first during corrections because it remains one of the riskiest asset classes.

Why the market is falling

In his view, the downturn cannot be pinned on a single cause and reflects five overlapping factors, including institutional repositioning, leverage liquidations and regulatory changes. He argues crypto is moving into a new phase where large funds and ETF-linked structures increasingly shape price cycles. After strong gains in the first half of 2025, major players took profits and cut exposure, reducing near-term demand and helping start the slide.

He places the downturn in a broader economic slowdown. Nosov points to weaker investment in AI-focused technology, declines in Japan’s Nikkei 225 and Hong Kong’s Hang Seng that reached Western markets, and softer trading in U.S. equities and gold.

Such corrections are a normal part of market cycles – they occur after periods of sharp growth to ‘adjust’ excessive valuations.

Excess leverage was another factor. On Oct. 10, mass liquidations hit crypto platforms, flushing out borrowing built up earlier in 2025. Lower liquidity and some capital outflows pressured short-term traders, while many long-term holders kept their positions.

Regulatory adjustments are also at play. Europe’s MiCA framework is still being implemented, and some institutions are waiting for final product guidance before adding exposure. Nosov also cites warnings from IOSCO about tokenization risks, including questions about the backing of tokenized assets.

As we can see, long-term trust in crypto will depend not only on market demand, but also on whether regulators can close potential gaps before systemic risks emerge,

— he notes.

He describes a changing market structure in which price cycles are shaped by large capital rather than retail sentiment, a dynamic examined in our Whitebit review. Some institutions have paused, and others have yet to enter, which he links to choppier trading during the transition.

What happens next

The WhiteBIT CEO expects the correction to last several weeks to a few months, depending on macro conditions and sentiment. He projects a return to greater stability in the first half of 2026, with the potential for a stronger uptrend in 2027 if the backdrop improves.

According to him, potential tailwinds include final regulatory implementation, renewed institutional inflows, growth in real-world asset tokenization, a more accommodative Federal Reserve rate path and improved market liquidity.

The pullback, he adds, has pushed capital toward assets with clearer utility and stronger compliance standards. He also notes that major exchanges handled spikes in activity during liquidations without widespread disruptions, and that risk appetite has moderated compared with earlier in the year.

Ultimately, Nosov advises market participants to focus on risk management and longer-term strategies rather than chasing quick peaks.

Opportunities remain – and will continue to grow – but the path to sustainable capital may become longer and more demanding.