FX.co ★ Bitcoin Drops Over 1%

Bitcoin experienced a decline of over 1%, settling at approximately $87,000, as it remained in a consolidation phase near the lows observed in November. The end-of-year period saw reduced liquidity and a cautious risk sentiment. The digital asset is poised to wrap up the fourth quarter with a near 22% loss—the weakest performance in a fourth quarter since the market collapse of 2018—and is on track for an annual decline of over 6% by the close of 2025. This decline arises in the context of persisting macroeconomic pressures, with on-chain metrics indicating diminished activity from miners and major stakeholders. The uncertainty surrounding potential future interest rate hikes has also dampened risk appetite, especially affecting yen-funded cryptocurrency trades in light of the Bank of Japan's rate increase to 0.75% in December. Concurrently, delays in the implementation of US regulations and substantial fund withdrawals have exacerbated the downturn in altcoins. Ether and Solana mirrored this trend, each falling more than 1%.