Image Source aljazeera
LONDON / NEW YORK – As 2025 draws to a close, the digital asset market is grappling with a sobering reality. Bitcoin (BTC), the world’s largest cryptocurrency, has entered a period of intense volatility, shedding nearly 30% of its value since hitting a historic peak of $126,251 in early October.
As of today, December 28, the “king of crypto” is hovering around the $87,000 mark, leaving investors to wonder if the 2024–2025 bull run has officially run out of steam.
The Great ‘Old Guard’ Exit
The primary driver behind this correction appears to be a massive distribution phase by long-term holders (LTHs). According to on-chain data from CryptoQuant and K33 Research, nearly $300 billion worth of Bitcoin that had been dormant for over a year re-entered circulation in 2025.
For many “whales” who held through the lean years, the psychological allure of six-figure prices proved too strong. As Bitcoin surged past $120,000, these veteran investors began a systematic sell-off into “thin bid liquidity,” creating what analysts describe as a “slow bleed” rather than a sudden flash crash.
Technical Breakdowns and ‘Dead Crosses’
From a technical perspective, the charts look increasingly defensive. In the last 48 hours, Bitcoin has failed to reclaim its 50-day and 100-day Exponential Moving Averages (EMAs), a signal that usually precedes further bearish momentum.
“The market is currently trapped in a bearish pennant,” notes Christopher Lewis, a senior market analyst. “If we break below the critical $80,000 support level, we could see a slide off a cliff toward the $74,000 range. Conversely, we need to recapture $92,500 to convince the bulls to return.”
Institutional Fatigue vs. Digital Gold
The narrative of Bitcoin as “Digital Gold” has also faced its toughest test yet. While traditional gold prices soared 70% this year amidst geopolitical tensions, Bitcoin has struggled to maintain its correlation as a safe-haven asset.
Furthermore, institutional appetite through Spot ETFs—the engine of early 2025 gains—has cooled. Outflows from major funds have totaled billions in December, as fund managers pivot toward year-end rebalancing and profit-taking in the wake of shifting Federal Reserve interest rate expectations.
Looking Ahead to 2026
Despite the current slump, the industry is not without its silver linings.
The passage of the GENIUS Act earlier this year provided much-needed regulatory clarity for stablecoins, and the U.S. government’s preliminary steps toward a Strategic Bitcoin Reserve provide a fundamental floor that didn’t exist in previous cycles.
For now, the crypto market remains in a “wait-and-see” mode, with liquidity expected to remain thin until the first week of January.
