The crypto market is ending 2025 the way many holiday parties do: awkwardly standing around, waiting for something to happen. Bitcoin (BTC) was treading water around $87,000 heading into the year's final weekend, stuck between thin holiday trading volumes and investors busy harvesting tax losses before the calendar flips.
Here's where the major cryptocurrencies stood: Bitcoin at $87,351.16, Ethereum (ETH) at $2,923.07, Solana (SOL) at $122.01, XRP at $1.84, Dogecoin (DOGE) at $0.1221, and Shiba Inu (SHIB) at $0.000007119.
The Numbers Tell a Messy Story
According to Coinglass data, 93,477 traders got liquidated over the past 24 hours, wiping out $244.46 million. That's a lot of leverage getting unwound in what's supposed to be a sleepy time of year.
Meanwhile, SoSoValue data shows spot Bitcoin ETFs hemorrhaged $175.3 million in net outflows on Wednesday alone. Spot Ethereum ETFs weren't much better, losing $52.7 million.
Why the Santa Rally Turned Into a Lump of Coal
Analyst ShardiB2 pointed to the obvious culprits: tax-loss selling and holiday liquidity that's thinner than airport coffee. With Bitcoin sitting among the few major assets actually down for the year, investors who made money elsewhere are dumping BTC to offset their tax bills. It's the financial equivalent of robbing Peter to pay the IRS.
That selling pressure has made $85,200 the line in the sand. Break below that level decisively, and things could get uglier fast.
The Bull Case Isn't Dead Yet
Trader Michael van de Poppe highlighted the technical level everyone should be watching: Bitcoin's 20-month moving average. A monthly close above this indicator, particularly above $90,000, would likely confirm bullish momentum and set up a much stronger start to 2026. If that happens, van de Poppe sees upside targets in the $105,000 to $110,000 range.
Adding some optimism, analyst Nebraskangooner noted that Bitcoin's monthly trend indicator flipped bullish for the first time since March 2023. That suggests the broader trend might be improving, even if the short-term action feels like watching paint dry.
What Else Is Happening
Arthur Hayes, never one for conservative predictions, believes the Trump administration's monetary policy could push Bitcoin toward $750,000 by 2026-27. Meanwhile, Peter Schiff continued his tradition of mocking Bitcoin, suggesting Santa gave holders "a rally to sell into."
In more tangible news, Changpeng Zhao-owned Trust Wallet announced it will cover $7 million in user losses following a security breach. And Amplify rolled out new ETFs focused on crypto infrastructure plays rather than direct Bitcoin exposure, giving investors another way to bet on the space without holding the coins themselves.
As 2025 limps to a close, the crypto market seems content to wait this one out. Whether January brings fresh momentum or more tax-driven selling remains to be seen, but at least the technical setup suggests bulls haven't completely given up the fight.
