Bitcoin briefly dipped below the level at which it started 2025, falling under $93,507 over the weekend as the broader crypto market experienced sharp losses. This pullback came despite generally positive developments throughout the year, including expanding corporate adoption and supportive government actions.
Bitcoin fell to $93,029 on Sunday — a drop of 25% from its all-time high reached in October. It has since recovered to around $94,209, according to CoinGecko data.
The year began with optimism after U.S. President Donald Trump, who has formed the most pro-crypto administration to date, took office on January 20. His administration has pushed forward regulatory clarity and encouraged a rise in corporate Bitcoin treasury allocations, while inflows into spot Bitcoin ETFs have continued to grow.
However, the tariff battles initiated by Trump and the U.S. government shutdown — which ended Thursday after a record 43 days — created several double-digit pullbacks for Bitcoin throughout the year.
Whale Selling Adds Pressure
Another factor weighing on Bitcoin’s recent performance has been selling activity from long-time holders and large “whale” wallets. This selling has reduced upward momentum even as industry fundamentals have remained strong.
Still, analysts at Glassnode said last week that fears of “OG whales dumping” are overstated. They noted that increased distribution from older cohorts is normal during late-cycle bull-market phases and reflects profit-taking rather than a mass exit.
Bitcoin’s decline also mirrors broader weakness across crypto assets. Ether has fallen 7.95% since the start of the year, while Solana has dropped 28.3%. Most altcoins have posted even larger losses.
Four-Year Cycle Remains Debated
The latest downturn has renewed debate over whether Bitcoin’s traditional four-year cycle still holds, given today’s heavier institutional involvement and clearer regulatory landscape.
Bitwise CIO Matt Hougan believes the long-term setup remains strong and expects Bitcoin to surge in 2026, driven by what he calls the “debasement trade” — a thesis tied to monetary expansion and capital flows into digital assets. He also expects broader crypto adoption in stablecoins, tokenization, and decentralized finance to boost the market.
“I think the underlying fundamentals are just so sound,” Hougan said. “I just think those are too big to keep down. So I think 2026 will be a good year.”
