Bitcoin Closes 2025 with Losses: Fourth Losing Year in History Despite Strong Institutional Adoption

Disappointing Annual Performance Despite New All-Time High

The year 2025 ended with a negative balance for Bitcoin: The leading cryptocurrency lost approximately 6 percent in value since the beginning of the year, and about 17 percent on a euro basis ^[1]. This makes 2025 the fourth losing year in Bitcoin's history – following 2014, 2018, and 2022 ^[1].

Yet the year began promisingly: Bitcoin initially rose to a new all-time high of over $109,300 in January ^[1]. At the beginning of the year, BTC was trading at $93,350, and at year-end at just under $88,000 ^[1]. The annual range moved between a high of approximately $126,300 and a low of about $74,400 ^[1].

Notably, Bitcoin recorded the lowest annual price change in its history in 2025 ^[1]. For the first time since 2014, the U.S. stock index S&P 500 rose in a year while BTC fell ^[1]. Gold and silver also posted significant gains while Bitcoin weakened ^[1].

Turbulent Year with Historic Flash Crash

In spring, the price crashed by more than 30 percent, trading at a low of approximately $74,400 as the trade war sparked by U.S. President Donald Trump shook the overall markets ^[1]. After a recovery, Bitcoin reached a high of over $126,000 on October 6, before a flash crash followed on October 10 ^[1].

This crash coincided with the largest liquidation event in crypto history: According to data from Coinglass, trading positions worth more than $19 billion were wiped out ^[1]. Afterward, BTC temporarily moved more than 35 percent away from its all-time high ^[1].

4-Year Cycle Still Intact, but Regularity Broken

With the negative year 2025, an important pattern that had existed since 2011 was broken: Previously, three years of rising prices always followed one year of price losses ^[1]. Nevertheless, the cycle theory appears to retain its validity – Bitcoin once again reached its temporary peak in the fourth quarter of the post-halving year ^[1].

USA with Pro-Crypto Agenda: Bitcoin Reserve and Regulatory Progress

Despite the disappointing price performance, there were significant institutional advances. On March 6, Donald Trump signed an Executive Order establishing a strategic Bitcoin reserve as well as a separate "Digital Asset Stockpile" – both consisting of seized assets ^[1].

At the first crypto summit at the White House on March 7, Trump emphasized: "From this day forward, America will follow the rule that everyone in Bitcoin knows very well – never sell your Bitcoin" ^[1]. He added that the Treasury and Commerce departments would explore new ways to accumulate Bitcoin holdings in a budget-neutral manner ^[1].

David Sacks, AI and Crypto Czar, described the reserve as "digital Fort Knox for digital gold" and emphasized that premature Bitcoin sales in recent years had cost American taxpayers over $17 billion in profits ^[1].

Further positive developments included the repeal of the SEC guideline SAB121, which had made it difficult for banks to custody cryptocurrencies for customers, as well as the passage of the GENIUS Act, which creates a legal framework for U.S. dollar stablecoins ^[1].

Several Countries Follow with Their Own Bitcoin Reserves

In the wake of U.S. developments, several countries explored their own Bitcoin reserves. Luxembourg's Finance Minister Gilles Roth announced in October that the EU member state had invested 1 percent of its $800 million sovereign fund in Bitcoin ETFs ^[1]. In Amsterdam, Roth emphasized: "Luxembourg hodls. We're in it for the long term" ^[1].

The Czech Central Bank launched a test portfolio with digital assets worth $1 million in November, including Bitcoin, stablecoins, and tokenized U.S. dollar deposits ^[1]. Central Bank Governor Aleš Michl explained that Bitcoin could "serve as a decentralized alternative and potential diversification option in large portfolios" ^[1].

Taiwan, Kazakhstan, Pakistan, Kyrgyzstan, and the United Arab Emirates also engaged with Bitcoin reserves ^[1].

Institutional Adoption Continues

U.S. Bitcoin spot ETFs recorded more than $21 billion in inflows ^[1]. The number of publicly traded companies holding Bitcoin rose from about 200 to nearly 1.1 million ^[1]. Strategy, the largest Bitcoin treasury company, increased its Bitcoin balance sheet by 226,097 BTC ^[1].

On Monday, however, Bitcoin encountered strong resistance at the $90,000 mark, leading to liquidations of nearly $100 million in leveraged positions ^[2]. Strong demand for traditional hedges such as gold and U.S. Treasury bonds is causing traders to doubt the momentum needed for a return above $100,000, according to Cointelegraph ^[2].