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Bitcoin rose slightly on Wednesday but remained on course to end 2025 in negative territory, weighed down by a sharp fourth-quarter downturn as thin liquidity and fading risk appetite pressured the broader cryptocurrency market.
The world’s largest cryptocurrency was last up 1.3% at $89,010 by 06:56 ET (11:56 GMT). Despite the mild intraday rebound, Bitcoin was on track to post a yearly loss of nearly 5%, with declines in the fourth quarter alone exceeding 22%. The pullback erased a large portion of the gains accumulated earlier in the year, after the token briefly surged to a record high above $126,000 in October.
The late-year slump left Bitcoin struggling to hold key support levels as investors trimmed exposure to risk assets amid tightening financial conditions and subdued trading activity toward the year’s end.
Q4 rout reverses early-year optimism
Bitcoin’s weakness in the final months of 2025 contrasted with the strong rally seen in the fourth quarter of 2024, when prices jumped following Donald Trump’s election victory on expectations of a more supportive regulatory environment for digital assets. That optimism carried over into early 2025, helping drive solid gains through the first half of the year.
Momentum faded from mid-year, however, as global liquidity conditions tightened and investors adopted a more cautious stance. Efforts to stage a December rebound failed to gain traction, despite seasonal hopes for a so-called Santa Claus rally. Repeated recovery attempts were met with profit-taking and position-cutting ahead of year-end.
While institutional participation in digital assets persisted — including continued activity in U.S. spot Bitcoin exchange-traded funds — inflows were not strong enough to offset the broader risk-off tone in global markets.
Altcoins remain subdued and set for annual losses
Altcoins were mostly range-bound on Wednesday and were also poised to close the year lower. Ethereum edged up 0.8% to $2,996.10 but was on track for a roughly 10% annual decline. XRP traded slightly higher at $1.87, likewise heading for a yearly drop of about 10%.
For the day, Solana rose 2%, while Cardano and Polygon were little changed. Meme tokens including Dogecoin and $TRUMP also traded broadly steady as subdued liquidity kept market moves contained heading into the final session of the year.
