Although this will be a monthly newsletter we’ll occasionally send timely updates like this on days that roil markets.
Crypto markets have entered a decisive correction phase, with Bitcoin and Ethereum retracing sharply from their 2025 highs as global risk appetite tightens. Bitcoin has pulled back more than 30% from its October peak, briefly sliding below key technical levels as ETF outflows accelerated and leveraged positions unwound across major exchanges. Ethereum and large cap altcoins have seen even steeper drawdowns, consistent with historical patterns during late cycle corrections. The driver isn’t a collapse in fundamentals but a shift in macro conditions. Uncertainty around the Federal Reserve’s rate cut timing, elevated treasury yields, and a broader rotation out of high beta assets. Market liquidity has narrowed, making downside moves more path dependent and amplifying volatility. This is a classic recalibration period after a strong year to date run, and portfolios with high cryptoasset beta are feeling that gravity.
At the same time, the structural backdrop continues to strengthen. U.S. regulators are advancing stablecoin frameworks, and the OCC’s recent guidance expanding banks’ ability to custody and transact in cryptoassets signals a continued institutionalization of the $3T cryptoasset ecosystem. Tokenization of real world assets, yield bearing onchain instruments, and improved bank grade custody options are forming the base layer for the next phase of adoption.
We think it’s prudent to share this chart looking at the performance of a 60/40 portfolio with a 5% allocation vs pure equity and bond allocations over the last five years.
What This Means for Advisers
With the correction underway, advisers should revisit risk limits and scenario planning: e.g., execute stress tests assuming a further drop of 20–40% in major crypto holdings. Client communications and portfolio governance matter more now than ever. Explain to clients that crypto is in transition from speculative momentum to structural embedding.
Educate before you allocate. Make it Turnqey.
If you have any questions or concerns feel free to reach out to our CEO Tyrone Ross at [email protected]
With gratitude,
The Turnqey Team
A pebble a day moves a mountain.
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