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Bitcoin [BTC] officially closed 2025 with an annual loss of 6.2%, underperforming other asset class, such as gold and the S&P 500, which posted gains of 62% and 16%, respectively.\u00a0<\/span><\/p>\n Ahead of the new year\u2019s rebalancing by key players, there has been an increasing sense of <\/span>caution<\/span> and bearish sentiment.<\/span> Hedging activity also surged, as Bitcoin\u2019s downside protection eyed a range of $75K-$80K in January.\u00a0<\/span><\/p>\n However, Bo Hines, Tether\u2019s strategic advisor and former White House executive on digital assets, <\/span>warned<\/span><\/a> bears against shorting BTC<\/a> in 2026.<\/span><\/p>\n \u201cAnyone bearish on Bitcoin heading into 2026 is foolish.\u201d<\/span><\/p>\n<\/blockquote>\n The likely passage of the crypto market structure bill and the appointment of the new Fed chair are viewed as bullish catalysts for 2026.<\/p>\n Even the short-term price action suggested a potential bottoming phase, but the mid-term outlook<\/a> remained mixed for the crypto asset.\u00a0<\/span><\/p>\n From an on-chain perspective, the BTC bottoming process was underway, according to <\/span>analyst<\/span><\/a> Frank Fetter. <\/span><\/p>\n Frank cited the easing of the short-term holder supply ratio and recovery towards \u2018break-even\u2019, which marked past bottoms.\u00a0<\/span><\/p>\n Source: Checkonchain<\/p>\n<\/div>\n The first sign of potential would be decisively reclaiming the STH realized price, which was $87.5K at the time of writing. This would reduce panic sell-off at a loss by STH or investors who have held BTC for less than five months.\u00a0<\/span><\/p>\n However, institutional inflows have not steadied. The U.S. spot ETFs attracted $355 million in daily net inflows on the 30th of December. <\/span><\/p>\n This marked the first time of inflow after seven consecutive days of outflows. But the trend was <\/span>reversed<\/span><\/a> again after another $348 million outflow on New Year\u2019s Eve.\u00a0<\/span><\/p>\n Collectively, the BTC demand, including that of BTC treasury firms, has dropped significantly and could turn negative if the contraction persists, <\/span>warned<\/span><\/a> Julio Moreno, head of research at CryptoQuant.\u00a0<\/span><\/p>\n Such a negative flip would drag BTC price lower.\u00a0<\/span><\/p>\n Source: CryptoQuant<\/p>\n<\/div>\n Meanwhile, it\u2019s unclear whether the crypto asset will hold and extend its current price range of $85K-$90K in the short-term.\u00a0<\/span><\/p>\n In the mid- to long-term outlook, analysts\u2019 projections are split, with bulls, such as Grayscale and Bitwise, calling for a new all-time high in 2026.\u00a0<\/span><\/p>\n On the other hand, Galaxy Research and other analysts have adopted a conservative and cautious stance, noting that 2026 may be too \u201c<\/span>chaotic to predict<\/span><\/a>.\u201d\u00a0\u00a0\u00a0<\/span><\/p>\n\n
Bitcoins Is Bitcoin\u2019s bottom really in?<\/h2>\n
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\nBitcoins Final Thoughts<\/strong><\/h2>\n
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