Bitcoin remains at historically high price levels, while on-chain data indicates a prolonged decline in network activity measured by active addresses. Since peaking at about 1.15 million daily active addresses in April 2021, participation has slid to roughly 680,000, even as the market experienced sharp rallies and corrections. Analysts point to increased long-term holding and growing off-chain exposure through custodial platforms and financial products as key forces reshaping Bitcoin's on-chain footprint in the current cycle.

On Tuesday, American Bitcoin Corp said its bitcoin holdings now exceed 5,000 BTC after adding another 54 BTC, placing the firm among the top 20 public bitcoin treasuries. Bitcoin is consolidating near $85,000–$87,000 as whales amassed 269,822 BTC worth $23.3 billion over the past 30 days, with traders eyeing a potential push toward $95,000 before December's end.

In early January, Vanguard’s policy reversal and Bank of America’s new crypto guidance open spot Bitcoin ETF access to tens of millions of retail and wealth-management clients. At the same time, a Dec. 16 FDIC proposed rule under the GENIUS Act starts a 12–18 month path toward bank-issued payment stablecoins that may reach public chains by late 2026. This alignment of new distribution channels and a long-dated stablecoin framework could shape Bitcoin flows far differently in the first quarter than at the end of 2025.

Bitcoin’s Lightning Network has reached a record capacity of more than 5,600 BTC, ending a year-long decline in liquidity on the layer-2 payments system. While large exchanges and institutional players are adding significant Bitcoin to existing channels, the number of nodes and channels remains below prior peaks, highlighting stronger capitalization rather than broad user growth.

Crypto analyst Doctor Profit plans to accumulate Bitcoin around $86,000 as part of a short-term relief rally strategy, while keeping a broadly bearish outlook. He expects the BTC price could revisit the $97,000 to $107,000 area before another major downturn and continues to hold short positions aimed at lower levels such as $70,000. At the same time, another analyst warns that losing support near $87,000 might open the door for a deeper drop.

Bhutan has committed up to $1 billion in Bitcoin from its sovereign reserves to support the long-term development of Gelephu Mindfulness City in Southern Bhutan. The government plans to allocate as much as 10,000 BTC over time, with the vision guided by King Jigme Khesar Namgyel Wangchuck and backed by state-run mining, renewable energy, and a partnership with Cumberland DRW. Additional renewable projects, including a 120-megawatt solar tender under the Solar Farm Expansion Project, are being advanced to reinforce the kingdom's clean energy-based digital asset strategy.

On 17 December 2025, Bitcoin was down more than a third from its cycle high earlier this year, with the drop attributed to tightening liquidity and aggressive deleveraging. Market participants point to the low-to-mid $80,000s as a potential stabilization zone linked to institutional ETF cost bases, while derivatives open interest has fallen sharply.

On Dec. 16, K33 reported that prolonged selling by long‑term bitcoin holders is close to saturation after roughly 20% of supply was reactivated over two years. The firm said about 1.6 million BTC ($138 billion) has moved since 2024 and expects the two‑year supply to recover, with selling easing in 2026.