Bitcoin Year-End Outlook: Facing a Potential Red Candle for 2025
As 2025 draws to a close, Bitcoin is on the brink of ending the year in the red, with the crucial requirement of a 6.24% increase above its opening price of approximately $93,374 to close positively. Market analysts are closely watching whether Bitcoin can recover in the remaining days or if this will mark its first annual decline post-halving, raising questions about the trajectory of its next cycle.
Key Takeaways
- Bitcoin needs a 6.24% rally to end 2025 in the green, avoiding its first post-halving yearly loss.
- The cryptocurrency peaked above $125,000 in October before a market crash curtailed its rally and pushed prices downward.
- Bitcoin has declined approximately 30% from its all-time high, forming a local bottom around $80,000 in November, sparking debate over whether a bull market has ended.
- Market sentiment is divided, with macroeconomic factors and liquidity conditions heavily influencing expectations for a recovery or further decline into 2026.
Tickers mentioned: Bitcoin
Sentiment: Cautiously Bearish
Price impact: Negative. The ongoing decline and failure to rally threaten further downside unless a significant rebound occurs soon.
Market context: The broader macroeconomic environment, especially Federal Reserve monetary policy, continues to weigh on Bitcoinโs future performance.
Analyzing Bitcoin’s Year-End Risks and Macroeconomic Influences
The cryptocurrencyโs price trajectory in 2025 has been marked by volatility and a significant decline from its October high, when it surpassed $125,000. Despite this record, Bitcoin has since fallen about 30% from its peak and hit a local support level near $80,000 in November. This decline has led analysts to question if the 2025 rally has fully played out or if weโre in the early stages of a longer bear market.
Market analysts remain divided on whether a reversal will materialize or if the downtrend will persist into 2026. Much of the debate centers around macroeconomic factors, especially Federal Reserve policy. Since November, Bitcoin has traced below its 365-day moving average โ a vital support level โ breaking its upward trend established earlier in 2023. This technical breakdown complicates the outlook but also underscores the influence of macro forces on its price.
Recently, the Federal Reserve conducted three interest rate cuts of 25 basis points each, aiming to foster liquidity and risk asset rallying. However, Federal Reserve Chair Jerome Powell signaled caution, noting that “there is no risk-free path for policy,” hinting at the possibility of holding rates steady in upcoming meetings. According to CME Groupโs FedWatch tool, only 18.8% of investors expect a rate cut at the next FOMC session, reflecting uncertainty around the direction of monetary policy and, consequently, Bitcoinโs potential recovery.
