Key Takeaways
- Bitcoin slipped to $87,408 on December 29 after briefly surpassing $90,000 amid year-end low liquidity.
- Federal Reserve rate cut expectations for 2026 supported Bitcoin’s earlier rally.
- Precious metals such as gold, silver, and platinum reversed gains amid unresolved Ukraine peace talks.
Bitcoin edged lower to around $87,408 on Monday, December 29, 2025, after briefly climbing above the $90,000 psychological barrier earlier in the session. The world’s largest cryptocurrency struggled to hold its gains as subdued year-end trading volumes and profit-taking prevailed. Investors remained cautious, tracking hopeful signals of further U.S. Federal Reserve interest rate cuts in 2026 and ongoing geopolitical tensions.
Bitcoin Retreats After Fed Easing Optimism Meets Year-End Thin Trading
Bitcoin’s brief surge near $90,000 coincided with broader market optimism fueled by expectations of additional Federal Reserve rate reductions next year. These anticipated cuts have lowered the appeal of cash and fixed-income assets, pushing capital toward higher-yielding risk assets like cryptocurrencies. This trend helped Bitcoin rally earlier in the session.
Despite that, Bitcoin failed to sustain momentum. Traders noted the $90,000 level as a significant technical and psychological resistance. Moreover, thin liquidity during the holiday period amplified selling pressures as investors booked profits. Bitcoin last traded 0.6% lower at $87,408 by 09:31 ET (14:31 GMT).
Precious Metals Fall Back Amid Continued Geopolitical Uncertainty
Precious metals prices retraced gains made earlier this month. Gold, silver, and platinum all declined after recent peaks. This shift reflects ongoing geopolitical risks, primarily the faltering U.S.-led peace talks related to the war in Ukraine, which have yet to produce a breakthrough.
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The persistent uncertainty has sustained demand for safe-haven assets such as precious metals, even as crypto markets also find some support from investors seeking alternatives amid global risks. Institutional involvement in crypto remains uneven, with some funds adopting a cautious “wait-and-see” approach ahead of key economic releases expected early in 2026.
Altcoins Exhibit Limited Movement During Year-End Trading Lull
Most major altcoins saw muted price action on Monday, reflective of subdued liquidity and investor caution. Ethereum, the second-largest cryptocurrency, traded almost unchanged at $2,947.51. XRP held steady near $1.86, while Solana, Cardano, and Polygon edged slightly lower. Meme tokens like Dogecoin and the OFFICIAL TRUMP token experienced only marginal fluctuations.
This stability amid low volumes suggests that markets are consolidating recent gains heading into the new year. Overall, Bitcoin and the broader crypto sector have yet to establish stronger catalysts for a sustained rally.
Bitcoin: Market Outlook
As 2025 draws to a close, Bitcoin remains below the key $90,000 resistance threshold, settling near $87,408 amid low trading volumes and profit-taking. The cryptocurrency’s near-term trajectory will largely depend on Federal Reserve policy guidance and evolving geopolitical developments, particularly with regard to Ukraine. Investors should monitor these factors closely, as they will be decisive in shaping Bitcoin’s path in early 2026.
