Bitcoin ended 2025 near $87,000, ending the year in a narrow trading range after months of losing momentum. Thin holiday liquidity and a lack of new catalysts left markets adrift in year-end trading, capping a period of consolidation and unmet expectations rather than explosive gains.
At the time of writing, Bitcoin is trading just below $88,000, largely flat over the past week and slightly lower than it was at the beginning of the year. Prices fluctuated between the low and low $80,000s for much of December, and repeated attempts to claw back $90,000 failed to attract sustained follow-through.
The calm at the end of the year contrasts with the optimism that characterized the beginning of 2025. Bitcoin began trading in the mid-$90,000 range in January, supported by strong inflows into spot Bitcoin exchange-traded funds (ETFs), increased institutional investor participation, and expectations that easy monetary policy will boost risk assets.
For a while, those stories seemed to remain intact.
Bitcoin continued its strong rally through the first half of this year, supported by steady ETF demand and continued accumulation by corporate treasuries and long-term holders. This rally culminated in October, when Bitcoin briefly hit a new all-time high of over $125,000. The move was fueled by improving macro sentiment, the upcoming expected rate cut, and renewed speculative interest across derivatives markets.
However, this rise proved unsustainable. As the fourth quarter progressed, tighter financial conditions, rising bond yields, and a stronger dollar began to weigh on risk appetite. Bitcoin rolled over along with stocks and other growth assets, giving back a significant portion of the gains.
By early December, prices had fallen more than 30% from their highs and re-entered the range that defined much of this year’s trading.
Bitcoin macro pressure continues
Macro forces played a central role in shaping Bitcoin’s performance in 2025. Inflation turned out to be more persistent than many investors had expected, forcing central banks to maintain their restrictive stance for longer than expected.
In this environment, cash and high-yield assets were prioritized over speculative exposure, limiting the overall crypto market upside. Bitcoin is often positioned as a hedge against currency declines, but it has struggled to attract marginal buyers as real yields remain high.
Liquidity conditions also deteriorated toward the end of the year. Volume fell significantly in December as market participants refrained from going out for the holidays.
With fewer active buyers and sellers, price movements became more volatile and confidence diminished. The lack of significant inflows into spot ETFs in the last few weeks of the year also added to the alarm.
Similar dynamics were reflected in on-chain data. Long-term holders remained largely inactive, while short-term traders dominated the flows and contributed to the range-bound price movement. Large holders reduced active accumulation after the October peak, but individual participation increased during the pullback, a pattern consistent with consolidation rather than trend formation.
Still, 2025 is not without some structural progress for Bitcoin. The market continued to mature, with greater derivatives liquidity, improved custody solutions, and greater integration into traditional financial infrastructure.
Spot Bitcoin ETFs ended the year with tens of billions of dollars in assets under management, supporting a new class of long-term demand despite fluctuations in short-term flows.
Bitcoin also significantly maintained its position as the leading digital asset, outperforming most alternative cryptocurrencies in relative terms.
Although it has fallen short of gold’s strong performance during periods of macro stress, Bitcoin remains one of the world’s most liquid and widely traded assets, reinforcing its role as a benchmark for the broader crypto market.
As Bitcoin heads towards 2026, the focus shifts to whether the prolonged decline can turn to the upside. Traders are eyeing the $90,000 level as an important psychological and technical threshold, but so far support in the low $80,000 range has held.
A meaningful change in the macro landscape, a new increase in ETF inflows, or a revival of institutional accumulation could be the catalyst needed to break the stalemate.
So far, Bitcoin has entered the new year in a calm state, trading around $87,000 and searching for direction.
