According to CoinGlass data, the primary cryptocurrency’s total value decline reached about 23% from its peak of $126,000 in early October to present levels. As of December 23rd, the price hovers around $87,000, which is 30% below the yearly high.
Specialists observe that the digital asset market did not experience the usual holiday surge, and its aggregate capitalization dropped beneath $3 trillion, suggesting that most traders are unwilling to embrace investment hazards, alongside market fatigue.
Analysts believe the reasons for the drop are linked to worldwide uncertainty, as overall geopolitical strain has lowered cryptocurrency investors’ risk tolerance, and the US Federal Reserve’s rate cut in December failed to stimulate demand for digital assets.
In addition, the Bank of Japan’s rate increase to 0.75% played a part, intensifying pressure on the crypto market and causing increased instability for altcoins such as Ether and Solana. Furthermore, on-chain metrics reveal a 4% decrease in Bitcoin’s hashrate by mid-December, marking the worst monthly reduction since April 2024.
Previously, Alex Thorn, head of research at Galaxy Digital, stated that the approaching year 2026 might prove tumultuous for Bitcoin due to economic and political perils, and the absence of a clear trend in the digital asset market could foster a difficult environment for the leading cryptocurrency’s price movement.
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