Bitcoin Nears Red Yearly Close: Galaxy Digital Explains The Setup

Bitcoin is closing in on New Year's Eve with a potential red yearly candle, down 6.3% year-to-date and 8.25% year-over-year. A close above $93,389 is needed to end 2025 positively.

Key Points:

BTC experienced a significant drawdown, trading about 36% below its all-time high of $125,296 despite positive headlines throughout the year.
A large month-end options expiry may impact BTC's current range between mid-$80,000s and $90,000.
Challenges include whale distribution, leverage wipeouts, and competition from other macro investments like AI and gold.
US Bitcoin ETF inflows have only decreased by 9% from their peak, despite a sharp fall in Bitcoin prices.
Long-term holders have sold more coins since July 2025 than at any time since the 2017 bull run.
Galaxy Digital predicts Bitcoin could reach $250,000 by 2027 but sees 2026 as unpredictable.
Options markets show wide uncertainty for BTC's price by June and December 2026.
Bitcoin's market cap is above $1.1 trillion, with a realized price over $56,000, indicating network growth.

At present, Bitcoin trades at $87,748.

Bitcoin price chart