The year 2025 is almost over, and while it had some exciting moments, it seems like Bitcoin (BTC) might end the year with losses. This past week didn’t bring much good news for the cryptocurrency either.
To recap, Bitcoin faced resistance at $94,500 a couple of times last week. This happened even after the US Federal Reserve (Federal Reserve) reduced interest rates, which usually brings positive effects. Then, more attention was placed on upcoming days due to important US economic updates. People expected prices to go up and down quickly (high volatility).
Monday started poorly for Bitcoin. In the afternoon, its price fell by several thousand dollars—from $90,000 to below $86,000—in just a few hours. On Wednesday, it tried to recover and briefly reached nearly $90,500. However, this rise didn’t last, and the price dropped below $85,500 shortly after.
Many in the crypto community focused on Thursday when Consumer Price Index (CPI) data was shared. CPI measures the change in prices people pay for goods and services (Consumer Price Index). The numbers showed lower-than-expected inflation, which is generally good news for markets. Bitcoin reacted quickly, jumping from $87,000 to $89,500. But this positive momentum was short-lived, and the price fell again, hitting a low of $84,500 (the lowest in weeks).
Now, Bitcoin has found some stability and is trading around $88,000. This means it has dropped nearly 5% over the week. However, that’s still better than how other cryptocurrencies performed: Ethereum (ETH) fell 9%, Solana (SOL) dropped 10%, Cardano (ADA) suffered a 14% loss, Chainlink (LINK) decreased by 12%, and Hype token (HYPE) dropped massively by 18%. Monero (XMR) is an outlier here, showing a rare gain of 5% for the week.
Latest Market Numbers
Here’s a snapshot of the cryptocurrency market:
- Overall Market Cap: $3.053 Trillion
- Daily Trading Volume: $166 Billion
- Bitcoin Dominance (share of market BTC holds): 57.5%
- Bitcoin Price: $88,000 (down 4.9% this week)
- Ethereum Price: $2,960 (down 9%)
- Ripple (XRP): $1.87 (down 8.6%)
This Week’s Major Crypto News
Here are some key updates from the crypto world this week:
- Terraform Labs Sues Jump Trading: Terraform Labs, known for its Terra blockchain, is taking Jump Trading to court over allegations it secretly earned $1 billion during the Terra ecosystem’s collapse. Terraform Labs has filed a $4 billion lawsuit against the firm (Terra, Jump Trading).
- Coinbase’s New ‘Everything App’: Coinbase officially launched its ‘Everything App.’ This app combines many features in one place, including social networking, trading cryptocurrencies, making payments, and earning rewards.
- Ethereum Network Struggles: The Ethereum blockchain (Ethereum) has seen major declines in activity. Fewer individuals are using the network, and its usage hit a 12-month low. However, some experts believe this could be an opportunity for long-term investors to buy Ether quietly.
- Bitcoin Faces a Bear Market: Bitcoin’s price dropped by over 30% in just 2.5 months, making some experts believe it has entered a bear market phase. A bear market is when prices keep falling over a long period.
- China’s Mining Crackdown Affects Bitcoin: Restrictive policies in China have caused Bitcoin’s hashrate—a measure of the network’s computing power—to drop to its lowest point in three months.
- Bitcoin and the ‘Supercycle’ Idea: Some analysts think we might see a new trend in Bitcoin cycles. In older trends, Bitcoin followed a four-year cycle with rising and falling phases. Now, experts suggest Bitcoin could be in a supercycle, meaning a long-lasting trend across several years.
Despite some negative points, Bitcoin continues to be highly influential in the cryptocurrency market. Over the next few weeks, traders and investors will closely watch its movement as 2025 comes to a close.
(Source: CryptoPotato) For more updates, stay tuned!