As the year draws to a close, Bitcoin, the world's most popular cryptocurrency, has once again caused serious concern among investors. The digital asset, which exceeded $126,000 at the beginning of October and hit a historic high, fell to around $84,000-85,000 by December. This dramatically changed the mood in the crypto market and raised the question: "Is this just a correction or the beginning of a major collapse?"
Cold shower after record growth
Bitcoin has once again been confirmed as a high-risk asset. After a short period of sharp growth, there was simply a sharp decline. Experts attribute this situation to a partial technical correction, that is, a natural market correction. Since the beginning of the year, the cryptocurrency has not suffered significant losses overall.
However, the problem was not limited to technical factors. In recent months, Bitcoin's dependence on global liquidity has become even more evident. That is, when there is a lot of "cheap money" in the global financial system, crypto assets grow, and when money decreases, they are under pressure. After August, this very liquidity began to decline.
Strict monetary policy and investor concerns
Monetary policy in the USA also had a serious impact on the market. Interest in risky assets declined after the US Federal Reserve maintained high interest rates. This situation has also been repeatedly criticized by Donald Trump - he accused the regulator of slowing down the economy. Federal Reserve Chairman Jerome Powell considers inflation risk to be the main priority.
In mid-November, investors began massively leaving risky assets and moving to "peaceful ports," such as gold and reliable government bonds. This was another blow to Bitcoin.
Major players are also in standby mode
Instability in the market encourages even the largest corporate investors to be cautious. For example, Strategy Inc, one of the largest corporate owners of Bitcoin, has preferred to increase its cash reserves by halting cryptocurrency purchases in recent weeks. This was received by market participants with the question "Are we expecting even lower prices?."
At the same time, some companies and private investors are experiencing significant losses. It is noted that the annual losses of British companies alone reached tens of millions of pounds sterling. According to Coinglass, this year could be one of the most unsuccessful periods for Bitcoin in the last seven years.
What awaits us ahead?
Analysts' opinions are divided. Some experts predict a decline in demand and an increase in the "bear" trend in the market, not excluding the possibility of Bitcoin falling to $70,000 or even $56,000 in the coming months. Others, on the contrary, believe that if interest rates decline and the flow of institutional investments through ETFs continues, the price could return to the range of $120-170 thousand.
Hopes for 2026
According to experts, there is a possibility that the situation will change in 2026. Changes in Fed leadership, lower interest rates, and political processes in the US can strengthen economic incentives. This could become another supporting factor for Bitcoin and other risky assets.
In conclusion, Bitcoin once again demonstrated its uncertain and highly risky nature. Short-term fluctuations will continue, but in the long term, the fate of cryptocurrency still depends on global financial policy and investor confidence.
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