Bitcoin Slips Below $88,000 Amid Year-End Tax-Loss Selling, Crypto Stocks Suffer Sharp Declines
On December 23, 2025, Bitcoin's price declined about 1% to just below $88,000. Crypto-related stocks experienced even steeper losses, with digital asset treasury firms among the worst performers. Notable declines included MSTR down 4.2%, XXI down 7.8%, ETHZ down 16%, Upexi down 9%, and approximately 6% drops for Gemini, Circle, and Bullish.
Analysts attributed these moves primarily to tax-loss harvesting and thinner year-end liquidity, which led to the selling of underwater positions. Open interest in Bitcoin and Ethereum perpetual futures decreased by about $3 billion and $2 billion, respectively, reducing leverage and increasing vulnerability to large price swings.
Deribit's Boxing Day options expiry accounts for over half of its total open interest, suggesting anticipated volatility but with some residual optimism from $100,000 call positions. Market participants expect these holiday-driven moves to subside as liquidity returns in January, forecasting consolidation rather than a rapid rebound to prior highs.
The market outlook indicates a slow recovery, with some analysts estimating it may take months before the overall crypto market approaches a $4 trillion capitalization from the current approximate $2.6 trillion.
In the broader market context, gold, silver, and copper surged to record highs earlier but have since pulled back. Meanwhile, U.S. equities were modestly higher, with the Nasdaq gaining 0.45%.
