Bitcoin edged slightly higher on Wednesday, but was still on track to end the year in negative territory, weighed down by sharp fourth-quarter losses amid weak liquidity and fading risk appetite, which continued to cast a shadow over the broader cryptocurrency market.
The world’s largest cryptocurrency was trading up 1.3% at $89,010 as of 06:56 a.m. US Eastern Time (11:56 GMT).
Bitcoin was heading for an annual decline of around 5%, with losses in the fourth quarter alone exceeding 22%. The cryptocurrency had reached a record high above $126,000 in October.
The sharp late-year pullback erased earlier gains and left Bitcoin struggling to hold key support levels, as investors retreated from higher-risk assets.
Bitcoin heads for annual loss after 22% drop in Q4
Bitcoin’s weakness toward the end of 2025 followed a strong rally in the fourth quarter of 2024, when prices surged after Donald Trump was elected US president.
At the time, markets had priced in expectations that his administration would adopt a more supportive regulatory stance toward digital assets, boosting sentiment across the crypto sector and driving strong investment inflows.
However, the optimism that carried into early 2025 proved difficult to sustain. After posting solid gains in the first half of the year, Bitcoin began to lose momentum from mid-2025 onward, as global financial conditions tightened and investor caution increased.
Recovery attempts in December failed to gain traction, despite seasonal expectations for a so-called “Santa Claus rally.” Bitcoin repeatedly struggled to reclaim higher price levels during the month, with each upward move met by renewed selling, as traders opted to take profits or scale back positions ahead of year-end.
Despite continued institutional interest in digital assets, including ongoing activity in spot Bitcoin exchange-traded funds, inflows were not sufficient to offset the broader risk-off mood dominating global markets.
Cryptocurrency prices today: altcoins under pressure, annual losses in focus
Most alternative cryptocurrencies continued to trade in narrow ranges on Wednesday and were on course to post annual losses.
Ethereum, the world’s second-largest cryptocurrency, rose 0.8% to $2,996.10, but was still heading for an annual decline of around 10%.
XRP, the third-largest cryptocurrency globally, also edged slightly higher to $1.87, but was similarly on track to record an annual loss of about 10%.
