Bitcoin Set to End 2025 on a Weak Note
Bitcoin’s turbulent year appears set to end weakly as the cryptocurrency struggles to regain momentum after October’s massive crash.
Analysts warn that increasing links with stock markets and AI-driven volatility could restrict Bitcoin’s gains for the remaining year.
Earlier this year, Bitcoin saw extreme highs and lows, reflecting volatility across global markets influenced by shifting economic conditions.
In early October, Bitcoin surged above $126,000 following increased retail and institutional adoption across several major financial sectors.
Days later, new tariffs and export threats from President Donald Trump triggered over $19 billion in crypto liquidations.
Read More: Crypto Stocks Slide Amid Sharp Decline in Bitcoin
Since that crash, Bitcoin has struggled to recover, with November marking its largest monthly decline since mid-2021 overall.
Bitcoin hovered around $89,000 on Monday, leaving traders uncertain about its year-end performance within the broader global market.
Bitcoin’s rising correlation with equities reflects growing retail and institutional involvement linking crypto movements directly with stock sentiment.
LSEG data shows rising correlations with the S&P 500 and NASDAQ 100 during 2025, driven by shifting investor behaviour.
Analysts say AI stocks significantly contributed to recent swings because of their speculative nature influencing broader market trends.
Interest rate expectations also influence Bitcoin, with dovish Federal Reserve signals supporting rallies and hawkish cues weighing on recovery.
Following October’s crash, forecasts softened as traders assigned a 15 percent probability Bitcoin would close the year below $80,000.
