Bitcoin closes 2025 near $87,000, ending the year in a tight trading range after months of waning momentum. Thin holiday liquidity and a lack of fresh catalysts saw the market slide into the final session of the year, capping a period marked less by explosive gains than by consolidation and unfulfilled expectations.
At the time of writing, bitcoin was trading just below $88,000, roughly flat over the past week and modestly lower than where it began the year. The price has spent much of December oscillating between the low $80,000s and high $80,000s, with repeated attempts to regain $90,000 failing to attract sustained follow-through.
The subdued year-end action contrasts with the optimism that defined the start of 2025. Bitcoin entered January trading in the mid-$90,000 range, supported by strong inflows into spot bitcoin exchange-traded funds, widening institutional participation and expectations that easier monetary policy would push risk assets higher.
For a time these narratives appeared intact.
Bitcoin continued to post a strong rally through the first half of the year, supported by steady ETF demand and continued accumulation of corporate government bonds and long-term holders. That progress culminated in October, when bitcoin briefly rose to a new record high above $125,000. The move was driven by improved macro sentiment, positioning ahead of expected rate cuts and renewed speculative interest across derivatives markets.
However, the rally proved to be unsustainable. As the fourth quarter progressed, tighter financial conditions, rising bond yields and a stronger dollar began to weigh on risk appetite. Bitcoin rolled along with stocks and other growth assets, giving back a significant portion of its gains.
By early December, the price had fallen more than 30% from its peak, re-entering a range that had defined much of the year’s trading.
Bitcoin macro pressure continues
Macro forces played a central role in shaping bitcoin’s performance in 2025. Inflation proved to be more persistent than many investors expected, prompting central banks to maintain a restrictive stance longer than expected.
This environment favored cash and income-bearing assets over speculative exposure, limiting upside across crypto markets. Bitcoin, often framed as a hedge against monetary deterioration, struggled to attract marginal buyers while real yields remained high.
Liquidity conditions also worsened at the end of the year. Trading volume fell sharply in December as market participants retreated for the holidays.
As fewer buyers and sellers were active, price movements became choppy and conviction declined. The lack of strong inflows into spot ETFs in the final weeks of the year reinforced the sense of caution.
On-chain data reflected a similar dynamic. Long-term holders remained largely inactive, while short-term traders dominated flows, contributing to range-bound price action. Large holders reduced aggressive accumulation after the October peak, while retail participation ticked higher during pullbacks, a pattern consistent with consolidation rather than trend formation.
Still, 2025 was not without structural progress for bitcoin. The market continued to mature with deeper derivatives liquidity, improved custody solutions and wider integration into traditional financial infrastructure.
Spot bitcoin ETFs ended the year with tens of billions of dollars in assets under management, anchoring a new class of long-term demand even as short-term flows fluctuated.
Bitcoin also maintained its position as the dominant digital asset by a wide margin, outperforming most alternative cryptocurrencies on a relative basis.
While lagging behind gold’s strong performance during periods of macro stress, bitcoin remained one of the most liquid and most traded assets globally, reinforcing its role as a benchmark for the broader crypto market.
As bitcoin heads into 2026, the focus shifts to whether the prolonged consolidation can resolve to the upside. Traders view the $90,000 level as an important psychological and technical threshold, while support in the low $80,000s has so far held.
A meaningful change in macro conditions, renewed ETF inflows or a resurgence of institutional accumulation could provide the necessary catalyst to break the deadlock.
For now, bitcoin heads into the new year subdued, trading around $87,000 and looking for direction.