Bitcoin is currently experiencing a downturn, trading at $87,642.37, down 2.65% from its previous close. The cryptocurrency has seen a significant decline, with a 22% drop in the fourth quarter, making 2025 one of the weakest year-end periods outside of major bear markets.¹ ²

Several factors are contributing to this crash, including:

- *Institutional Demand Slowdown*: November 2025 saw $3.4 billion in net outflows from U.S. spot Bitcoin ETFs, led by IBIT's $2.34 billion redemptions.

- *Political Optimism Wane*: Initial enthusiasm around the U.S. presidential election has faded, reducing demand.

- *Corporate Treasury Accumulation Fatigue*: Companies like Strategy and American Bitcoin Corp. have accumulated significant holdings, but this wave is showing signs of exhaustion.

Analysts predict key downside levels at $70,000 and $56,000, with the latter representing a long-term baseline. The market remains vulnerable to sharp reversals, particularly during U.S. trading hours.³