Bitcoin and Ether Drop Over 22% in Q4 2025 Amid Failed December Santa Rally
Bitcoin ended December 2025 down about 22%, marking its worst month since December 2018. Ether also suffered, declining roughly 28.07% during the fourth quarter of 2025, according to data from CoinGlass. The anticipated Santa rally failed to materialize as Bitcoin repeatedly failed to reclaim key price levels amid thin liquidity and waning risk appetite.
The cryptocurrency market delivered negative performance throughout the quarter, even as gold and other precious metals advanced. This contrast was driven by expectations of rate cuts, geopolitical tensions, and increased demand from central banks. Bitcoin's behavior resembled that of a high-beta asset, with gains dependent on a broader appetite for risk rather than macroeconomic easing alone.
During late 2025, market patterns showed price bounces followed by rapid profit-taking. Leverage was reduced during holiday periods, and heavier selling took place during U.S. trading hours as funds engaged in de-risking. Looking ahead to 2026, a critical question is whether Bitcoin can maintain its recent support zones into the new year. Failure to do so could signal a deeper market reset before any sustained rally.
