Bitcoin fall seen as liquidity cycle, not structural shift: Bitget CEO

Cryptocurrency markets have been under pressure in 2026, as the flagship token Bitcoin has fallen nearly 48 per cent from its October 2025 peak. Gracy Chen, CEO, Bitget, in an email interview with Kumar Gaurav, said Bitcoin has historically been highly sensitive to liquidity cycles, noting that periods of volatility are not unusual. She characterises the current downturn as a market correction rather than a structural shift in the broader crypto trend. Edited excerpts:

Bitcoin has fallen sharply from its recent highs. Is this a healthy market correction or the start of a more prolonged consolidation phase?

This looks more like a correction than a structural change. A lot of capital has recently moved toward major tech IPOs and AI-related opportunities, while stronger US economic data has reduced expectations for near-term rate cuts. Bitcoin has always been sensitive to liquidity conditions, so some volatility is expected. ETF participation remains strong, institutions continue to treat it as a long-term asset, and market attention is likely to return once current macro uncertainty begins to ease.

Has Bitcoin's decline impacted trading volumes? If so, how are crypto exchanges coping with the slowdown, and are margins and profitability coming under pressure?

Spot trading can slow as investors become more selective, but derivatives, hedging activity, and stablecoin flows often remain active. Exchanges today are also much more diversified than they were a few years ago. Trading, earn products, payments, tokenised assets, and copy trading all contribute to activity across different market conditions. The industry has become much less dependent on a single source of revenue.

How has investor behaviour changed during the current correction compared with previous cycles?

Investors are far more disciplined than they were in previous cycles. Earlier corrections were often driven by panic and speculation. Today, there is much more focus on platform security, reserve transparency, liquidity, and long-term allocation strategies. Institutional participation has also changed the market. Investors are still reacting to macroeconomic events, but they are generally making more informed decisions than in previous cycles.

Do you believe India's current tax regime is discouraging innovation and pushing trading activity to offshore or informal channels?

India remains one of the largest crypto adoption markets in the world despite the current tax framework, which shows the level of demand that already exists. At the same time, transaction costs and tax obligations can influence where some trading activity takes place, particularly among active traders. Greater regulatory clarity could help bring more participation into regulated channels while supporting innovation across trading, tokenisation, payments, and blockchain infrastructure.

Security, transparency, and compliance have become major concerns for investors following several industry setbacks globally. How is Bitget differentiating itself on these parameters?

Trust has become one of the most important factors when users choose a platform. Investors want to know how assets are stored, risks are managed, and platforms operate. Bitget publishes regular Proof of Reserves reports, maintains a Protection Fund, and continues to invest heavily in security systems and anti-scam initiatives. Compliance is equally important. As regulation develops across different markets, exchanges need to build long-term governance and risk management capabilities.

If regulatory clarity improves in India, how large could the country's crypto market become over the next five years in terms of users, trading activity, and institutional participation?

India already has many of the ingredients needed to become one of the world's largest digital asset markets. It has a large retail user base, a strong developer community, and one of the most advanced digital payment ecosystems globally. Regulatory clarity would likely accelerate participation from institutions, fintech companies, and traditional financial players. The opportunity extends far beyond trading into tokenised assets, payments, custody, and broader blockchain-based financial services.

What are the key trends you expect to shape the crypto industry over the next 12–18 months—AI-linked tokens, stablecoins, real-world asset tokenisation, or something else?

Stablecoins and tokenisation remain the biggest long-term themes. Stablecoins are increasingly being used for payments, settlement, and cross-border transfers, while tokenisation is expanding access to equities, commodities, funds, and other assets. AI will continue to attract attention, particularly where it improves trading, automation, and on-chain services. The bigger shift is that blockchain is increasingly becoming part of mainstream financial infrastructure. The projects that gain the most adoption will be those that solve real financial problems and improve access to markets.