A traditional year-end rally has lifted global stocks and precious metals to fresh record levels, but bitcoin has not joined the celebration. As markets move into the holiday period, the world’s largest cryptocurrency has slipped lower, reflecting a more cautious tone among traders while other assets push ahead.
Bitcoin was trading around $87,200 on Friday, down about 6.5% from its opening level near $93,000 at the start of 2025, according to data. The decline comes despite bitcoin having reached a record high above $126,000 in early October. Since then, price action has cooled, with BTC spending most of the holiday week oscillating below the $90,000 mark.
Market analysts point to thin year-end liquidity and a major derivatives event as key factors behind the muted performance. A record $28 billion worth of crypto options expired on Friday, a dynamic that can amplify price moves when trading volumes are lighter than usual.
“The tone remains defensive,” said Timothy Misir, head of research at BRN, noting that recent attempts to push prices higher have struggled to gain momentum.
Institutional flows suggest a similar pullback in risk appetite. U.S. spot bitcoin exchange-traded funds recorded roughly $500 million in net outflows this week, bringing total withdrawals over the final two months of the year to around $4.3 billion. Over the same period, the broader cryptocurrency market has shed more than $1.2 trillion in total value, underscoring the scale of the retreat.
While bitcoin has drifted, precious metals have staged a historic rally. Gold climbed above $4,580 per troy ounce on Friday, setting a new all-time high, while silver surged past $75. Silver has risen roughly 160% since the start of 2025, and gold is up more than 70% over the year.
Analysts attribute the surge to a mix of geopolitical tensions, a softer U.S. dollar, and year-end liquidity effects that have exaggerated price moves. Central-bank buying, steady ETF inflows, and expectations of further Federal Reserve rate cuts in 2026 have also bolstered demand for non-yielding assets, according to recent reports. Silver’s rally has been especially sharp, fueled by speculative interest and lingering supply disruptions following an October short squeeze.
Equity markets, meanwhile, have held their ground near record territory. U.S. stocks extended their late-December rally, with both the S&P 500 and the Dow Jones Industrial Average closing the shortened Christmas Eve session at all-time highs. For the year, the S&P 500 is up about 18%, while the Nasdaq has gained more than 20%, according to Google Finance.
As the year draws to a close, the contrast across markets is striking. Stocks and precious metals are ending 2025 on a strong note, while bitcoin enters the final days under pressure. Whether the cryptocurrency regains momentum in the new year may depend on how quickly risk appetite returns once holiday trading gives way to normal market conditions.
