Bitcoin Swings All Year, Marks First Annual Decline in Three Years

Solidifying Its Status as a 'Risk Asset' Alongside the Stock Market
November Sees Largest Monthly Drop Despite Influx of Investors

In 2025, the price of Bitcoin experienced significant fluctuations throughout the year, marking a decline for the first time in three years on an annual basis. According to the US cryptocurrency exchange Coinbase, on December 31 (local time), the price of one Bitcoin was traded at $87,646, down about 7% compared to the beginning of the year.

In 2025, the price of Bitcoin experienced significant fluctuations throughout the year, marking a decline for the first time in three years on an annual basis.

This year, Bitcoin demonstrated extreme volatility as it simultaneously reached all-time highs and experienced large-scale liquidations. Early in the year, market sentiment was buoyed by expectations for President Donald Trump's pro-crypto policies, but in April, news of global tariff clashes led to a sharp drop in both the stock market and Bitcoin.

Subsequently, Bitcoin rebounded following the implementation of the "Genius Act," which brought dollar-based stablecoins under regulatory oversight. In early October, Bitcoin set a new all-time high at $126,210. However, just days later, President Trump announced a 100% tariff on Chinese imports and major export controls on software, reigniting market anxiety.

During this period, forced liquidations among leveraged investors led to the largest liquidation event in history, totaling about $19 billion. As a result, the anticipated rallies in October ("Uptober") and November ("Moonvember") failed to materialize, and November saw the largest monthly decline since 2021.

Experts analyze that Bitcoin's risk-asset characteristics, similar to those of stocks, became even more pronounced in the global financial markets this year. Lin Tran, Chief Market Analyst at financial firm XS.com, commented, "In 2025, Bitcoin established itself as a risk asset, showing a high correlation with stock market movements."

Once considered "digital gold" and seen as moving independently from the stock market, Bitcoin is now increasingly mirroring stock market sentiment due to the large-scale entry of institutional and individual investors. Analysts predict that next year, Bitcoin will remain highly sensitive to major economic indicators, including changes in monetary policy and debates over bubbles related to artificial intelligence.

The recent weakness in Bitcoin is also tied to investors selling off risk assets such as technology companies, speculative firms, and meme stocks as a form of hedging. Patrick Hosman, Chief Investment Officer at BNB Plus, pointed out, "Bitcoin could fall further to $60,000," adding, "The pain is not over yet."

The Wall Street Journal reported, "Looking at past 'crypto winter' cases, Bitcoin showed signs of recovery after plunging up to 80% from its peak, but the recent sharp decline is due to a combination of factors, unlike past structural issues." Additional market instability is being caused by the People's Bank of China's announcement of a crackdown on stablecoins and global credit rating agencies' downgrades of USDT's stability.