The cryptocurrency market limped into the new year with Bitcoin trading near $87,500 on January 1, marking a 30% decline from its October peak and capping off a year that defied historical patterns and investor expectations. The global crypto market capitalization stood at $2.96 trillion, down from an all-time high of $4.28 trillion in early October—a drop of approximately $1.3 trillion that has left the industry grappling with what many analysts are calling a structural shift.
The downturn carries particular significance as Bitcoin officially broke its four-year market cycle, recording its first red candle after a halving year in history. The cryptocurrency, which underwent its halving in April 2024, was expected to experience explosive growth in 2025, but instead ended the year roughly flat. “This is the first time since the 2014 bear market that Bitcoin failed to complete a trilogy of green candles,” according to market data tracking the historical pattern that had defined crypto cycles since the currency’s inception.
Adding to market pressures, digital asset treasury companies now face an existential crisis as index provider MSCI prepares to announce a crucial decision on January 15 that could trigger between $10 billion and $15 billion in forced selloffs across 39 companies holding $113 billion in market capitalization. MicroStrategy, now known as Strategy, which holds over 649,000 bitcoins worth approximately $56 billion, faces potential forced outflows of $2.8 billion if excluded from major indexes like the MSCI USA and MSCI World.finance.yahoo+2youtube
Galaxy Digital warned in its annual report that at least five digital asset treasury firms could be forced to sell assets, merge with larger players, or shut down altogether as market conditions tighten. Many of these companies, which traded at multiples of 3x to 10x their modified net asset value during the summer months, are now struggling at or below their asset values.thecoindetective+1
- https://finance.yahoo.com/news/msci-index-changes-could-force-112735177.html
- https://www.youtube.com/watch?v=ONpXSfCrK5M
- https://247wallst.com/investing/2025/11/23/mstr-investors-mark-your-calendars-for-jan-15-billions-could-be-wiped-off-in-1-day/
- https://finance.yahoo.com/news/mstr-investors-mark-calendars-jan-155136831.html
- https://thecoindetective.com/news/details/?id=357988
- https://finance.yahoo.com/news/december-could-decide-fate-digital-140027527.html
Aleda Kawis is the Professional Journalist and serving in the field since 2012. She keeps extensive experience as investigating journalist and media influencer.
