NEW YORK, December 31, 2025, 13:40 ET — Regular session
Bitcoin slipped below $88,000 on Wednesday as trading remained thin into the end of the year and investors weighed the outlook for U.S. interest rates. The world’s largest cryptocurrency was last down 0.7% at $87,753.
Ether, the second-largest token, was little changed, up 0.1% at $2,974.81.
The move matters now because bitcoin is headed for its first annual loss since 2022 after a sharp pullback in risk appetite late in the year. Trump Media and Technology Group said it will distribute a new digital token to shareholders, a sign of the sector’s growing political and corporate footprint even as prices softened.
Flows into U.S.-listed spot bitcoin exchange-traded funds, or ETFs — funds that hold bitcoin and trade like stocks — have become a key gauge of institutional demand. Data from Farside Investors showed those ETFs took in about $355 million of net inflows on Tuesday, while BlackRock’s iShares Bitcoin Trust reported roughly $67.8 billion of net assets as of Dec. 30.
Macro data also fed into the day’s risk calculus after the Labor Department reported initial jobless claims fell to 199,000 last week, beating forecasts for a rise. “The drop in initial unemployment claims to 199,000 in the week of Christmas was likely another seasonal-adjustment distortion,” John Ryding, chief economic adviser at Brean Capital, said, as investors weighed Federal Reserve minutes showing policymakers divided over further rate cuts. Reuters
U.S. stock markets are open on New Year’s Eve with normal hours, but will be closed on Jan. 1 for the New Year’s Day holiday. Bond markets close early at 2 p.m. ET, a schedule that can exaggerate swings as liquidity thins.
Crypto-linked stocks were mixed in the regular session. Coinbase Global fell 1.1% and Strategy slipped 1.0%, while bitcoin miners Marathon Digital lost 1.3% and Riot Platforms rose 1.6%.
The iShares Bitcoin Trust ETF, one of the biggest spot bitcoin ETFs, was down 0.04%.
Strategy, the largest corporate holder of bitcoin, disclosed this week that it bought 1,129 bitcoin for about $108.8 million. The purchase was funded by stock sales through an at-the-market offering, which lets companies sell shares directly into the open market, Barron’s reported, citing an SEC filing.
For traders, the $90,000 area remains a near-term pivot after several weeks of holiday-thinned trading. A sustained break above it would likely ease pressure on crypto-exposed equities, while a drop under the week’s lows would put focus on round-number support near $85,000.
The broader backdrop is still dominated by rates and the dollar. The U.S. dollar fell around 10% in 2025 against a basket of major currencies, a move that buoyed some commodities — but bitcoin is closing out the year lower, keeping attention on whether fresh flows stabilize the market in early 2026.
The next macro test for risk assets comes quickly, with earnings reports expected to start in mid-January and the Fed’s next policy decision due on Jan. 28. Traders will watch whether incoming data and central bank guidance shift expectations for how far and how fast rates fall in 2026.
For now, bitcoin remains sensitive to changes in rate expectations and to abrupt liquidity gaps around holidays. As 2025 closes, investors are watching whether the new year brings steadier inflows — or another bout of de-risking.
