Photographer: Michael Nagle/Bloomberg
(Bloomberg) — Bitcoin is missing out on the Christmas cheer.
As traditional markets move into the final days of the year with a burst of seasonal optimism, the world’s largest cryptocurrency has barely stirred. Bitcoin is trading around $87,370, pinned in a $85,000 to $90,000 range and showing little sign of life — an asset built on hype, volatility and disruption ending the year in a standstill.
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The lethargy follows a bruising autumn. A sharp selloff in October knocked Bitcoin from records, draining momentum and leaving prices stranded. The token is down about 30% since around then and on track for its worst quarterly performance since the second quarter of 2022, when the collapse of TerraUSD and Three Arrows Capital rocked the industry.
The market is still struggling to regain its footing after the October crash. Trading volumes are thin and retail speculation has faded. US spot Bitcoin exchange-traded funds have turned into net sellers in the fourth quarter, removing a key source of demand that powered earlier rallies.
Elsewhere, markets are sending a very different signal. US stocks have surged into a classic Santa rally, pushing the S&P 500 to a record close and rewarding retail investors who stayed with technology shares and other momentum trades.
Gold, the market’s oldest refuge, has climbed to fresh all-time highs, reinforcing its role as both a hedge against uncertainty and a store of value. The metal has climbed near $4,500 an ounce, capping gains of more than 70% this year — on track for its best annual performance since 1979 and the second-strongest in over a century, according to data compiled by Bloomberg.
Bitcoin is managing neither. After spending much of early 2025 trading like a risk-on asset alongside equities, it has conspicuously failed to join the year-end rally. And despite its long-running pitch as “digital gold,” it has not attracted the defensive flows lifting bullion. Instead, it has gone quiet, down more than 7% for the year.
“Hard assets are attracting capital as long-duration hedges, while crypto remains sidelined,” said Timothy Misir, head of research at digital-asset analytics firm BRN.
Some of the inertia is technical. Bitcoin has slipped below its 365-day moving average near $102,000, a level that had acted as key support during the current cycle. The failure to reclaim that threshold has raised the risk of a deeper pullback.
A more than $23 billion options expiry later this week is freezing directional bets, reinforcing the stalemate, while holiday-thinned liquidity has further dulled activity. But those factors only underline a deeper absence: there is no obvious buyer wanting to step in.
Another drag has been sustained selling by long-term holders. Pratik Kala, a portfolio manager at hedge fund Apollo Crypto, said Bitcoin’s price action this year has been “notably disconnected from the ultra-bullish news cycle” surrounding the asset.
He attributed that gap to continued distribution by early holders and episodes of forced selling, including the sharp October drawdown, which together kept rallies from gaining traction. Kala said much of that selling pressure now appears to have run its course, leaving Bitcoin “trading in a value region” that he believes could set the stage for stronger performance next year.
For now, though, as stocks rally and gold shines, Bitcoin’s stillness is delivering its own verdict: an asset built on excitement ending the year without any to spare — a far cry from expectations heading into what many hoped would be a cycle marked by maturity and mainstream acceptance.
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