Investors anticipating a celebratory surge to close out 2025 have been met with a starkly different reality. Bitcoin is grappling with persistent resistance and a market sentiment now characterized by “extreme fear,” rather than charging toward new highs. The digital asset remains well below its October peaks, and a recent pullback by institutional players has introduced fresh waves of uncertainty into the market.
Institutional Enthusiasm Cools
A significant dampener on sentiment has emerged from the corporate sector. Prenetics, a health technology firm backed by David Beckham, has reversed its earlier plan to allocate corporate treasury funds to Bitcoin. Market observers interpret this decision as a signal that corporate confidence in digital assets is wavering amid broader economic uncertainties.
This corporate hesitation coincides with a notable slowdown in spot Bitcoin ETF activity. Products like BlackRock’s iShares Bitcoin Trust saw stagnating inflows or even outflows in the final weeks of Q4. This marks a shift from earlier in the year, when institutional capital was a primary driver of upward momentum, suggesting a period of risk reassessment is underway ahead of 2026.
Technical and Macroeconomic Headwinds
The macroeconomic backdrop offers little support. Disagreement within the U.S. Federal Reserve regarding potential interest rate cuts in 2026 has tempered hopes for imminent liquidity injections. Furthermore, a strengthening U.S. Dollar Index (DXY) continues to exert pressure on risk-sensitive asset classes, including cryptocurrencies.
Should investors sell immediately? Or is it worth buying Bitcoin?
From a chart perspective, the setup remains precarious. A sustained daily close above the psychologically critical $90,000 level has yet to materialize, leaving the near-term outlook bearish. Immediate support is seen around $86,000, with a more significant structural base positioned near $84,000. The trajectory for early 2026 will largely depend on whether institutional buyers return and greater clarity on monetary policy emerges.
Sentiment Gauges Reflect Deep Pessimism
Despite Bitcoin trading in a narrow band between $87,000 and $88,300 on the year’s final trading day, this superficial stability is misleading. The widely watched Crypto Fear & Greed Index has plunged to a reading of 21, firmly in “extreme fear” territory.
The dominant factor behind this pessimism is the repeated failure to breach the key $90,000 threshold. A lack of sustained buying pressure has prevented a decisive breakout. Trading volumes, subdued due to the holiday period, have left the market vulnerable to macroeconomic shocks. With the price nearly 30% below its 52-week high of approximately $125,000, the defensive posture of market participants is clearly justified.
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