Bitcoin (BTC) has slipped from highs reached earlier in the fall of 2025, losing nearly $40,000 from its early October peak. The decline reflects a pullback fueled more by large holders than retail traders, igniting panic selling among whales who bought near the top, according to recent market analysis. This downward pressure contributed to a broader 32% selloff in cryptocurrencies.
Despite this significant drawdown, Bitcoin continues to trade in a relatively tight range near $87,000, showing signs of stagnation rather than recovery. Liquidity remains cautious amid light trading volumes heading into the Christmas holiday, as many global markets shut down and investors await clearer signals before committing capital.
Bitcoin's subdued performance contrasts sharply with traditional equity markets, where stocks have embarked upon a year-end rally. Early in 2025, Bitcoin had tracked risk-on assets closely, moving in tandem with equities. However, it has failed to join the recent Wall Street cheer, missing out on the seasonal optimism seen across conventional markets. Likewise, as a so-called digital alternative to gold, Bitcoin has yet to attract significant defensive buying seen in bullion.
Market data shows Bitcoin holding steady with only minimal gains over the past week, maintaining a narrow corridor between $85,000 and $90,000. Ethereum also edged up slightly to $2,929, while many other altcoins, including Solana, Dogecoin, and Cardano, registered declines. Meanwhile, BlackRock, the world's largest asset manager, disclosed moving about 2,292 BTC valued at roughly $200 million on Christmas Eve, underscoring ongoing institutional involvement at these levels.
The underlying dynamics reveal a market in search of direction, with new large-scale sellers shaking confidence while prominent investors continue to make significant yet selective moves. Recent whale activity hints at profit-taking after Bitcoin’s massive three-year surge of approximately 423%, even as it outpaced the S&P 500's 76% gain during the same period.
Adding complexity, Bitcoin is currently testing a crucial support threshold near $87,000, a level closely watched for indications of either renewed strength or further weakness. The cryptocurrency remains caught between competing forces: long-term holders betting on its value proposition and short-term traders wary of volatility ahead of the new year.
Reading the Christmas Calm and Beyond
The Christmas holiday has brought a noticeable pause in markets, with Bitcoin failing to generate momentum despite positive sentiment in stocks and other assets. Trading volumes have thinned considerably, adding to Bitcoin's price inertia. This lull reflects broader caution as investors digest the recent selloff triggered by large-scale liquidations.
Looking forward, the interaction between institutional moves, such as BlackRock’s transfers, and market sentiment will be crucial. While some analysts highlight Bitcoin’s potential to reclaim momentum in 2026, altcoin strength and regulatory developments will also shape market trajectories.
For now, Bitcoin remains in a delicate state, balancing at a crossroads below $90,000, as market participants gauge whether selling pressure from large investors marks the peak or just a pause in its multi-year bull trend.