Bitcoin Price Fell In 2025, But Lows Show A Strong Floor

"The bitcoin price traded through a wide range last year. According to Bitcoin Magazine Pro data, bitcoin rallied above $126,000 during mid-to-late-year advances fueled by ETF inflows and optimism around U.S. regulatory clarity. Those highs did not hold. By the fourth quarter, tighter financial conditions and elevated real yields weighed on risk assets. The bitcoin price slid sharply from its peak and ended the year near $87,000. It is on track for its first full-year decline since 2022."

"Bitcoin's yearly lows continued to trend higher. Data shows the yearly low rose from $366 in 2016 to $76,329 in 2025. Each major cycle has set a higher floor despite deep drawdowns along the way. The pattern held after major downturns in 2018 and 2022. In both cases, bitcoin later established higher yearly lows. The 2025 low stands well above prior cycle troughs, even after a volatile year."

"Analysts say the rising floor suggests deeper capital support than in past cycles. Long-term holders have shown greater willingness to accumulate during declines. Forced selling has remained concentrated during brief liquidation events rather than extended crashes. Macro conditions played a central role throughout the year. Inflation remained sticky. Central banks kept policy restrictive longer than expected. That backdrop favored yield-bearing assets and pressured speculative positioning."

Bitcoin rallied above $126,000 during mid-to-late-year advances fueled by ETF inflows and optimism around U.S. regulatory clarity, but those highs did not hold. Tighter financial conditions and elevated real yields in the fourth quarter pressured risk assets and pushed bitcoin down to about $87,000 by year-end. Yearly lows have trended higher across cycles, rising from $366 in 2016 to $76,329 in 2025, indicating deeper capital support and accumulation by long-term holders. The gap between yearly highs and lows widened, reflecting persistent volatility and growing market size. Correlation with broader risk markets increased, especially during U.S. trading hours.

Read at Bitcoin Magazine