Bitcoin has declined about 26% over the past three months and roughly 30% from its near $126,200 peak, but on-chain data indicates it is still outperforming most major crypto sectors. While the total crypto market cap has fallen around 27.5% and altcoin segments such as AI, DeFi, meme coins and real-world asset tokens have recorded much deeper losses, investors are concentrating capital in BTC as a comparatively defensive asset. At the same time, mid-sized "shark" holders have rapidly accumulated around 54,000 BTC in a week, even as long-term whales distribute coins and keep near-term upside constrained.

Bitcoin has hovered around $89,000–$90,000, well below the October peak near $126,000. Samson Mow says Dec. 26 matters more than recent candles, as the December options expiry with heavy call interest between $100,000 and $118,000 and put clusters around $85,000–$90,000 could unlock a larger move.

On December 16, 2025, Grayscale said in its 2026 Digital Asset Outlook that quantum computing is a long‑term challenge and will not threaten Bitcoin or broader crypto markets in 2026. The firm added that adoption, regulation, and capital flows will drive performance, while machines capable of breaking Bitcoin's cryptography are unlikely before 2030.

On 15 December, Strategy purchased 10.6K BTC worth over $980 million, after acquiring another $962 million in Bitcoin the previous week, lifting its total BTC investment above $50 billion. Analysts claim Michael Saylor’s rapid, share-funded accumulation suggests he is positioning for potential BTC-backed banking products, even as critics warn about MSTR stock dilution and the price dropped over 8%.

Bitwise CIO Matt Hougan, in a note to clients late Monday, said bitcoin could break its four-year cycle and reach new all-time highs in 2026. He expects lower volatility and weaker correlation with equities, noting bitcoin was less volatile than Nvidia stock throughout 2025. According to The Block, bitcoin is down over 30% from its Oct. 6 peak near $126,000.

Throughout 2025, Michael Saylor‑led Strategy accumulated 223,800 Bitcoin at a weighted average cost of $99,908 per BTC, lifting its total holdings to 671,268 BTC and pushing the firm’s treasury value to about $60.05 billion. A Form 8-K dated December 15, 2025 disclosed the latest weekly purchase of 10,645 BTC for roughly $980.3 million at an average of $92,098, implying an acquisition pace of around 641 BTC per day and leaving the company with an unrealized gain of about $9.73 billion, or 19%.

Bitcoin slid under $85,000 overnight, triggering close to $600 million in long liquidations across the crypto market as traders positioned for a potential interest rate hike by the Bank of Japan this week. The move erased more than $218 million in Bitcoin longs and over $213 million in Ethereum longs while major altcoins, including Solana, XRP, BNB, Cardano, and Dogecoin, also posted notable 24-hour losses.

On 16 December 2025, MetaMask launched native Bitcoin support, allowing users to buy, send, receive, and swap BTC directly within the wallet. The update reduces reliance on wrapped Bitcoin and aligns with a broader push toward chain-agnostic wallets that unify access to multiple blockchain ecosystems. This move is part of MetaMask's ongoing multichain strategy, positioning the wallet as a neutral interface rather than an Ethereum-only gateway.