While traditional markets are experiencing a seasonal upswing at the end of the year, the world’s largest cryptocurrency, Bitcoin, has remained almost unchanged. Its trading price hovers around $87,370, fluctuating within the range of $85,000 to $90,000, showing no signs of recovery. This asset, built on hype, volatility, and disruptive factors, has come to a standstill at the end of the year.
The sluggish market is a result of a painful autumn. The sharp drop in October sent Bitcoin’s price tumbling from its all-time high, with momentum waning and the price remaining stagnant. Since then, Bitcoin’s price has fallen by approximately 30% and is on track to record its worst quarterly performance since the second quarter of 2022, when the collapses of TerraUSD and Three Arrows Capital shook the entire industry.
The market is still struggling to recover after its sharp decline in October. Trading volumes are light, and retail speculative activity has waned. The US spot Bitcoin exchange-traded fund (ETF) turned to net selling in the fourth quarter, eliminating a key source of demand that had previously driven the market higher.
On the other hand, other markets sent out completely different signals. The US stock market witnessed a typical Christmas rally, with the S&P 500 index hitting a new high, which brought substantial profits to retail investors who held onto tech stocks and other momentum stocks.
Gold, as the oldest safe-haven asset in the market, has reached a new high in price, reinforcing its dual status as a hedge against uncertainty and a store of value. According to data compiled by Bloomberg, the price of gold has approached $4,500 per ounce, with a cumulative increase of over 70% this year. It is on track to achieve its best annual performance since 1979 and is set to record the second strongest annual gain in more than a century.
Bitcoin performed poorly in both respects. For most of the first half of 2025, it traded like a stock as a risky asset, but then failed to catch the year-end rally. Despite its long-standing reputation as “digital gold”, it did not attract the defensive capital inflows that pushed up the price of gold. Instead, it performed lacklusterly, with a decline of more than 7% so far this year.
Timothy Misir, the research director of digital asset analytics firm BRN, said: “Hard assets are attracting capital as a long-term hedging tool, while cryptocurrencies remain marginalized.”
The continuous selling by long-term holders is another factor dragging down the price of Bitcoin. Pratik Kala, portfolio manager of Apollo Crypto, a hedge fund, said that the price movement of Bitcoin this year is clearly out of step with the “super bullish news cycle” surrounding the asset.
He attributed this price gap to the continuous selling by early holders and forced selling, including the sharp decline in October, which together hindered the rebound momentum. Kala said that most of the selling pressure seems to have passed now, and Bitcoin is “trading within a value range”, which he believes may lay the foundation for a stronger performance next year.
