Bitcoin Ends 2025 Facing Risk of Annual Decline Following Record Highs

A Volatile Year and Increasing Correlation The year 2025 has been recorded as a period of both historic records and sharp sell-off waves for Bitcoin, the world's largest cryptocurrency.
For the first time since 2022, Bitcoin carries the risk of closing the year with an annual loss.
During this process, the correlation between the cryptocurrency and traditional stock indices has strengthened significantly.
Analysts state that changes in monetary policies, new customs tariffs, and concerns regarding high valuations in artificial intelligence stocks have directly impacted Bitcoin prices.
Jasper De Maere, a strategist at Wintermute, noted that the reaction of crypto assets to broader equity markets became a consistent theme throughout 2025.
October Record and Historic Liquidation Wave Driven by the impact of the U.S.
Presidential elections earlier in the year, Bitcoin surged to an all-time high of over $126,000 in early October.
However, this peak was not permanent.
The threat of new customs tariffs and export controls announced on October 10 triggered a sharp retreat in the markets.
This development led to over $19 billion in liquidations in leveraged crypto markets, marking the largest liquidation wave in cryptocurrency history.
Bitcoin has struggled to recover since then, with November seeing the largest monthly decline since mid-2021.
Year-End Outlook and Analyst Forecasts Data from options markets show that investor pessimism has decreased slightly in recent weeks.
As of the end of last week, the probability of Bitcoin closing the year below $80,000 was priced at 15%, down from 20% a few weeks prior.
The current situation shows that expectations have fallen short for institutions that set high targets at the beginning of the year.
Michael Saylor’s company, MicroStrategy, had predicted in October that Bitcoin would reach $150,000 this year.
Similarly, Standard Chartered analysts had forecasted that the price could rise to $200,000 by the end of 2025, supported by ETF inflows.