Bitcoin, the best-known and traded cryptocurrency on the market, has recently retreated to $90,000. Although it later progressed above $93,734, it remains the only major asset that has not appreciated so far in 2025.
The cryptocurrency ended 2024 at $93,714, just 0.02% less than this Tuesday's closing price, showing that bitcoin has been flat year-to-date despite hitting a new all-time high of $126,251 just a month and a half ago.
This zero return contrasts sharply with the performance of the S&P 500, which has gained 12% so far this year; the Nasdaq, up 15% since the beginning of 2025; the Dow Jones, up 8%; the Ibex 35, with a 36.47% gain; and gold, which has increased its price by 54%, according to Bloomberg data.
However, bitcoin's situation is relatively new, as until October 6 the cryptocurrency had behaved similarly to other assets and indices and had even risen 33% for the year.
Nevertheless, upon hitting its peak of $126,251 on October 6, the digital currency began to fall, pressured down by the U.S. President Donald Trump's announcement of massive tariffs on China, which caused a 5.6% drop in the cryptocurrency's price.
Between October 8 and 11, the price of bitcoin fell 10%, dropping from $122,900 to $110,395 in just three days. And at the beginning of November, it tested the $100,000 psychological barrier, which it broke forcefully on the 13th.
Since then, the digital asset has been 'contagious' with the market's fear of high valuations of companies related to Artificial Intelligence, and this Tuesday it reached $89,901.94, a low since last April, although a few hours later it advanced to $93,700.
From its early October high to Tuesday's close at 5:35 p.m. local time (4:35 p.m. GMT), the cryptocurrency has fallen 25.7%.
But bitcoin is not the only flat cryptocurrency so far in 2025, as others like Ethereum and Solana are even in the red. Ethereum is down 5% from December 31, while Solana is 25% cheaper than then.
Kraken's Global Head of Strategy, Thomas Perfumo, emphasizes that this downward trend for the cryptocurrency may be due to a slowdown in inflows into bitcoin ETFs and a reduction in the cryptocurrency's volatility. The exchange platform analyst notes that the demand momentum peaked during the summer and since then the market has become 'increasingly tense due to leverage accumulation', so positions have been liquidated as the digital asset has retreated.
However, Perfumo sees no signs of 'systemic risk' and considers macroeconomic trends, changes in liquidity, progress in U.S. legislation on cryptocurrencies, and the potential boost from companies like Microstrategy, focused on bitcoin purchases, important for bitcoin's future.
