Bitcoin has surrendered its 2026 gains, falling approximately 4% in the past 24 hours to around $88,850 as of Wednesday morning Asia time.
The price now sits almost exactly where it closed in 2025, erasing a three-week rally that had briefly pushed the cryptocurrency above $97,000. At the time of writing, the token is attempting to rebound after touching a session low of $87,901.
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A Disappointing Year-End for 2025
Bitcoin closed 2025 at approximately $87,000-$88,000, down about 30% from its October all-time high of $126,000 and posting a roughly 6% annual loss. December proved particularly brutal, with the cryptocurrency falling about 22% for its worst monthly performance since December 2018.
The much-anticipated “Santa rally” never materialized. Thin holiday liquidity and a lack of fresh catalysts left the market drifting into the final session of the year. The repeated attempts to reclaim key resistance levels were met with selling pressure.
New Year Rebound: Inflation Relief and Regulatory Hopes
Sentiment shifted dramatically in early 2026. On January 14, the Bureau of Labor Statistics released an inflation report showing prices stabilizing, prompting Bitcoin to surge more than 4% over 24 hours and break above $97,000, levels not seen since mid-November.
Breaking above the $95,000 level, a zone that carries both technical and psychological significance, suggested further upside potential. Optimism around the Clarity Act, which would establish a broad regulatory framework for digital assets, also supported sentiment. However, the Senate postponed its planned markup of the bill to the last week of January, signaling it had not yet secured the