Investor Kevin O’Leary has issued a stark warning about the future of the crypto market, emphasizing that only Bitcoin (BTC) and Ethereum (ETH) are poised to thrive as the sector faces a crucial reality check. According to O’Leary, many speculative altcoins will not survive the upcoming wave of regulation and institutional money.
O’Leary, who has long been a prominent figure in finance, highlighted that large institutional investors—such as pension funds, sovereign wealth funds, and insurance companies are preparing to enter the crypto space. However, these major players are not interested in risky or unregulated assets. Instead, they are looking for stable, regulated investments, with Bitcoin and Ethereum at the forefront.
He pointed out that data shows these two cryptocurrencies dominate the market, capturing 90% of the market’s pricing volatility. For institutional investors, this means they do not need to consider altcoins to gain exposure to the crypto market. Both Bitcoin and Ethereum have already proven themselves in terms of stability and return potential.
Most of these altcoins, what I call poopoo coins are done.
With regulation coming and institutions preparing to invest, the data is clear: Bitcoin and Ethereum capture over 90% of the market’s performance.
The big money wants compliance, stability, and global pricing, not… pic.twitter.com/71tADUuEcL
— Kevin O'Leary aka Mr. Wonderful (@kevinolearytv) December 5, 2025
Regulation and Institutional Money Shape the Future
O’Leary also discussed the progress of the Clarity Act in the United States, which aims to provide much-needed regulatory clarity for the crypto sector. According to O’Leary, this regulatory framework is precisely what institutions have been waiting for.
Once the regulations are finalized, a wave of institutional capital is expected to flow into the market. However, this capital will be directed only toward assets that meet the highest compliance standards.
He further emphasized that, in the current environment, institutions typically allocate only a small percentage of their portfolios to alternative assets like cryptocurrencies. For most investors, Bitcoin and Ethereum already offer all the risk and return exposure they need.
A Shifting Crypto Landscape: Only the Strong Will Survive
O’Leary’s comments underscore the maturing nature of the crypto market, where speculation is gradually being phased out. As regulations tighten and institutional money begins to enter, only cryptocurrencies with real demand, regulatory backing, and global liquidity are likely to endure. For O’Leary, the message is clear: Bitcoin and Ethereum will continue to dominate the market, while most altcoins will fade into obscurity.
Despite these developments, the market remains volatile. Recently, Bitcoin faced a near drop below $80,000, and Ethereum also saw its price dip toward $2,800.
Altcoins followed a similar trend, with many struggling to maintain value. Still, as the market matures, the shift toward institutional-grade assets is set to reshape the landscape in the coming years.