Bitcoin missed the year-end "Christmas market" as the price hovered around $87,000.

In the traditional financial market, as the year-end "Christmas rally" and the obvious increase in risk appetite usher in, the world's largest cryptocurrency Bitcoin has shown almost no sign of improvement, appearing out of place. On Wednesday, the price of Bitcoin was hovering around $87,000, stuck in the range of $85,000 to $90,000 in recent days, with a tepid trend and low trading volume. This asset, known for its high volatility and speculative sentiment, unexpectedly stagnated at the end of the year. Bitcoin's weakness stemmed from the previous autumn rally. A sharp decline in October caused it to fall significantly from its historic highs, losing market momentum. Since then, Bitcoin has dropped by about 30% and is expected to record its worst quarterly performance since the second quarter of 2022. The collapse of stablecoin TerraUSD and the closure of the cryptocurrency hedge fund Three Arrows Capital had a significant impact on the entire industry. After the sharp drop in October, the crypto market is still struggling to recover. Trading volume remains low, and retail speculative enthusiasm has noticeably cooled. At the same time, the US spot Bitcoin ETF turned into net selling in the fourth quarter, weakening an important source of demand that supported the rise of Bitcoin. In contrast, traditional markets are sending completely different signals. The US stock market is experiencing a typical "Christmas rebound", with the S&P 500 index repeatedly hitting new closing highs, bringing returns to retail investors holding technology stocks and momentum trades. Gold, as a traditional safe-haven asset, is also performing well, with prices rising to nearly $4,500 per ounce, with a year-to-date increase of over 70%, potentially achieving the best annual performance since 1979, the second strongest annual increase in over a century. In comparison, Bitcoin is falling short on both ends. While Bitcoin's performance was highly synchronized with risk assets at the beginning of 2025, it has clearly lagged behind in the year-end market. Additionally, its long-touted "digital gold" attribute has failed to attract defensive inflows that would drive gold prices higher. Since the beginning of the year, Bitcoin has dropped by over 7%. Timothy Misir, head of research at the digital asset research firm BRN, pointed out, "Hard assets are attracting funds as long-term hedging tools, while crypto assets are still being marginalized." Over $23 billion worth of Bitcoin options contracts expiring this week are suppressing directional bets, combined with a decrease in holiday liquidity, further exacerbating the market stalemate. Additionally, continued selling by long-term holders is also dragging down the market. Pratik Kala, portfolio manager at the crypto hedge fund Apollo Crypto, said that Bitcoin's price performance this year is "clearly disconnected from extremely bullish news cycles." He believes this is mainly due to continued selling by early holders and passive selling, including the sudden drop in October, making it difficult for multiple rebounds to form a trend. However, Kala also pointed out that the selling pressure may be nearing its end, and Bitcoin is currently in a "value range," setting the foundation for a stronger performance next year.