Trump's tariff policies and the 43-day U.S. government shutdown contributed to multiple double-digit price corrections throughout the year.
Bitcoin News
Bitcoin fell to $93,029 on Sunday, erasing all gains accumulated since Jan. 1 when it started the year at $93,507. The drop represents a 25% decline from its all-time high reached in October, with the cryptocurrency since recovering to around $95,209.
The pullback occurred despite positive industry developments throughout 2025, including regulatory momentum under the Trump administration and increased corporate Bitcoin treasury adoption. Spot Bitcoin exchange-traded funds have also seen continued inflows during this period.
Trump's tariff policies and the 43-day U.S. government shutdown contributed to multiple double-digit price corrections throughout the year. The government shutdown ended on Thursday, though the expected market relief failed to materialize over the weekend.
Long-term Bitcoin holders and whales selling portions of their holdings have compressed upside momentum even amid favorable regulatory changes. Glassnode analysts noted last week that this selling pattern reflects normal bull market behavior during late-cycle stages.
"This steady rise reflects increasing distribution pressure from older investor cohorts, a pattern typical of late-cycle profit-taking, not a sudden exodus of whales," the analysts stated.
Ethereum and Solana have declined by 7.95% and 28.3%, respectively, since the start of 2025. Most altcoins have experienced even steeper losses during the same period.
Industry analysts continue to debate whether the four-year cycle thesis remains valid given increased institutional and regulatory backing compared to earlier market cycles. Bitwise chief investment officer Matt Hougan predicts Bitcoin will rally in 2026 due to the debasement trade thesis, with broader markets benefiting from increased adoption in stablecoins, tokenization, and decentralized finance.
"I think the underlying fundamentals are just so sound," Hougan said last Wednesday. "I just think those are too big to keep down. So I think 2026 will be a good year."
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