Bitcoin’s 2025 Rally Stalls as Market Volatility Returns
After a promising start driven by the re-election of crypto-friendly President Donald Trump, Bitcoin’s 2025 trajectory has become increasingly unstable. While early optimism pushed the asset to an all-time high above $126,000 in October, the subsequent announcement of tariffs and looming export controls sent shockwaves through both crypto and equity markets. The result was a rapid liquidation of over $19 billion in leveraged crypto positions the largest in history.
Bitcoin is currently trading near $89,000, down sharply from its peak and struggling to recover amid risk-off investor sentiment. Analysts note that the cryptocurrency is now at risk of ending the year lower, a reversal from bullish projections made earlier in 2025 by firms like MicroStrategy and Standard Chartered, both of which previously forecast highs of $150,000 to $200,000 by year-end.
Correlation with Equities Grows Stronger in 2025
One of the defining features of this year’s crypto market has been Bitcoin’s increasing correlation with equity markets, particularly the S&P 500 and NASDAQ 100. Traditionally viewed as a non-correlated or even counter-cyclical asset, Bitcoin now appears to mirror broader risk asset behavior.$BTC
