Over the past weekend, Bitcoin dropped sharply, temporarily falling below $93,507 – its opening price for 2025 – despite positive developments from corporations and the U.S. government. The leading cryptocurrency hit a low of $93,029 on Sunday, down 25% from its all-time high in October, effectively erasing all of its gains for the year.
2025 was expected to be a strong year for the crypto market, following the inauguration of U.S. President Donald Trump and a pro-Bitcoin administration that had largely fulfilled its promises. However, factors such as trade wars and a record 43-day government shutdown contributed to multiple deep price corrections throughout the year.
In addition, Bitcoin “whales” and long-term investors sold portions of their holdings, putting downward pressure on the market even amid positive news. Analysts from Glassnode noted that this distribution behavior is typical in the late stages of a bull cycle and should not be seen as a “whale exodus.” It wasn’t just Bitcoin; Ether and Solana also faced declines of 7.95% and 28.3% respectively since the start of the year, while many other altcoins suffered even steeper losses.
Analysts continue to debate whether Bitcoin’s four-year cycle theory still holds, even as the market now benefits from stronger institutional and regulatory support. Some experts, including Matt Hougan, Chief Investment Officer of Bitwise, believe Bitcoin could surge in 2026 due to the “debasement trade,” with the broader crypto market benefiting from the growth of stablecoins, tokenization, and decentralized finance (DeFi). Hougan stated, “The underlying fundamentals are simply too strong to keep down. I believe 2026 will be a good year for Bitcoin and the crypto market.”
Despite ongoing volatility, the crypto market remains fundamentally strong, offering positive prospects for the year ahead.
