Bitcoin has gained more than 1.2% in 2025 and recently rebounded to around $94,000. Rising Japanese government bond yields — with the two-year briefly above 1% and the 20-year near 2.947% — risk pulling hundreds of billions of dollars back home and tightening global liquidity, pressuring Bitcoin, stablecoins and other risk assets. If Japanese yields hold above 2.9%, Bitcoin could drop 5–8% as yen carry trades unwind and investors rotate toward safer markets.

Bitcoin rebounded above $92,000 on Monday after dropping below $84,600 last week. Technical signals remain soft, and ETF open interest shows rising put positioning. Analysts expect BTC to stabilise around $100,000 to $120,000 by late 2025, with scope for a second peak in 2026. Macro expectations, US policy shifts and increasing on-chain "liveliness" suggest long-term investors may be re-entering the market.

Bitcoin dropped below $86,000 on December 1, extending November's 17% decline—the largest monthly loss for the asset in 2025 and its worst November since 2018. The selloff erased a week of gains within hours, wiping more than $144 billion from total crypto market capitalization. Long position holders absorbed losses exceeding $535 million as thin weekend liquidity and cascading liquidations amplified volatility.

Strategy's shares have declined more than 67% from their 2025 high as Bitcoin dropped over 36% from above $126,000. The company paused its regular Bitcoin purchasing this week while trading near a 14-month low. The halt marks the first notable break in a months-long acquisition pattern amid concerns over potential removal from major indexes.

Bitcoin fell to $93,000 on Sunday, its lowest level since May, as the cryptocurrency market saw $619 million in liquidations over 24 hours. The Crypto Fear & Greed Index dropped below 10, entering extreme fear territory. Analysts cite liquidity pressures and delayed government payments as primary drivers of the selloff.

Bitcoin maintains levels above $100,000 while gold trades near $4,100 per ounce as investors assess year-end momentum potential for both assets. Both reached significant peaks in 2025, with Bitcoin hitting $125,000 in October and gold touching a record $4,380 before retracing. The assets now compete for investor attention amid seasonal trading patterns and evolving macroeconomic conditions.

US M2 money supply reached $22.2 trillion in September 2025, marking a 4.5% year-over-year increase and the 19th consecutive month of expansion. Bitcoin's price movements continue to correlate with rising liquidity conditions as central banks inject capital into financial systems. After adjusting for inflation, M2 expanded by 1.4% during the month, according to Federal Reserve data.

Coinbase launched the x402 protocol in May 2025, allowing AI agents to manage cryptocurrency wallets and execute stablecoin transactions independently. The protocol experienced a 10,000% surge in transactions within one month. AI systems can now handle payments for subscriptions, cloud services, and content rewards without human intervention.

Bitcoin rose 3.6% Monday, surpassing $115,000 as US-China trade tensions showed signs of easing. The broader crypto market capitalization climbed 3.7% to $3.9 trillion, while Ether gained 7% to $4,200. Altcoins including VIRTUAL, HYPE, and ZCASH posted substantial advances as investors positioned ahead of central bank policy decisions.