Bitcoin continued its downward trajectory on Saturday, disappointing investors who had hoped for a festive price surge as the holiday season approached. The leading cryptocurrency was trading close to $87,404 per coin, marking a nearly 2% decline over the past 24 hours. Over the past week, Bitcoin slipped by almost 1%, and its value has dropped by 4% in the last month. Year-to-date, Bitcoin’s performance has also been lackluster, reflecting ongoing challenges in the market.
In contrast, other asset classes such as precious metals and stocks experienced significant gains this past week. Ethereum fell by more than 2%, hovering around $2,927, while XRP was priced at $1.85, also seeing a decline over the past week. Notably, both cryptocurrencies are trading well below their all-time highs, specifically by 41% for Ethereum and 49% for XRP.
Disappointment has been a common theme for cryptocurrency investors as the anticipated “Santa rally” failed to materialize for Bitcoin and its counterparts. Historical data indicates that October was a peak month for Bitcoin, reaching a record high of $126,080. However, investor fatigue and a severe market crash that saw $19 billion wiped out in liquidations have hindered Bitcoin’s price recovery in subsequent months.
Despite Bitcoin’s initial surge following the inauguration of crypto-friendly President Donald Trump, it was trading around $95,000 at the beginning of the year. Current market conditions have shown that while cryptocurrencies struggle, traditional assets like gold, silver, and platinum have reached new highs, boosted by geopolitical tensions and a push towards asset debasement. Meanwhile, U.S. stock indices, including the S&P 500 and the Dow Jones Industrial Average, also reached record closing highs earlier in the week, although they slightly declined on Friday.
While this year was initially projected to be a turning point for Bitcoin, a lack of liquidity has dampened its performance dramatically. Some industry analysts, however, remain optimistic about the potential for a cryptocurrency market rally in 2026, fueled by expanding central bank balance sheets and increased liquidity. Others argue that Bitcoin’s typical four-year cycle may have concluded, suggesting that despite current market fears, there could be opportunities for returns in the coming year.
