The final days of 2025 have brought a flurry of activity—and anxiety—to the world of cryptocurrency, with Bitcoin at the center of a rapidly shifting landscape. As the year draws to a close, data from multiple trading platforms reveals that Bitcoin is under mounting pressure, with leverage and volatility both on the rise and prominent liquidation zones clustering across the derivatives market. The situation is compounded by a market-wide sense of uncertainty, even as some altcoins manage to buck the trend with impressive gains.
According to reporting from Bitcoin Magazine NL, the open interest in Bitcoin derivatives remains stubbornly high, signaling that traders are still willing to take big risks despite recent turbulence. In tandem, the realized volatility of Bitcoin has surged above its multi-year average, meaning price swings are coming faster and harder than usual. For those unfamiliar, volatility in this context measures how wildly Bitcoin’s price bounces around in a given period—think of it as a rollercoaster where the drops and climbs are getting steeper and more unpredictable.
On-chain analytics have shed further light on the current state of play. Over the past month, so-called "whales"—large wallets holding substantial amounts of Bitcoin—have been quietly accumulating tokens. This is a classic move by deep-pocketed investors, who often buy in tranches and are less likely to react to short-term price jitters. While this doesn’t guarantee a price surge, it does indicate that powerful market players see value at these levels. As Bitcoin Magazine NL notes, “On-chain data from the past month shows large wallets (whales) have purchased a significant number of tokens, indicating interest from wealthy parties.”
But the market’s mood is anything but calm. In the last 24 hours alone, more than $100 million in Bitcoin positions were liquidated, with the majority being long positions—bets that the price would go up. This wave of forced selling, as reported by Bitcoin Magazine NL, has put additional pressure on the price, a phenomenon familiar to seasoned traders. When leveraged bets go wrong, they’re automatically closed, flooding the market with sell orders and causing sharp price drops—sometimes without any clear news trigger.
CoinGlass heatmaps currently show significant clusters of liquidation risk at both $86,000 and $91,000. These are the price levels where, if the market moves sharply, a cascade of liquidations could occur, amplifying volatility even further. As Ted, a crypto analyst cited by Bitcoin Magazine NL, observed, “$BTC has 2 decent liquidation clusters right now. On the upside, there’s a huge chunk of short liquidations sitting around the $91,000 level. On the downside, there’s a decent liquidity cluster around the $86,000 level.”
Despite all this commotion, the technical structure of Bitcoin remains intact. The price continues to move within a rising channel, marked by higher lows and a well-defined resistance at the upper boundary. Every time the lower edge of this channel has been tested recently, buyers have stepped in to defend it, suggesting that demand remains robust in these zones. As long as Bitcoin stays within this structure, technical analysts see no confirmed trend reversal. Simply put, the bulls haven’t thrown in the towel just yet.
Market psychology, however, is a wild card. With volatility running high, emotions often take over. Retail investors—those with smaller holdings—are more likely to panic and sell into dips, while whales usually remain composed, adding to their positions during periods of fear. This dynamic can create exaggerated price swings and reinforce the very volatility that spooks less experienced traders.
It’s not just Bitcoin feeling the heat. According to Crypto Insiders, the total value of all cryptocurrencies rose by 0.7% in the past 24 hours, reaching approximately $3.04 trillion. Bitcoin itself saw a modest 0.5% gain, trading around $87,525 (or €74,334). However, the report cautions that this uptick might be losing steam, with the market still unconvinced about the sustainability of the current recovery. “The recent Bitcoin recovery shows signs of losing momentum, with the market remaining cautious about a sustainable upward trend,” Crypto Insiders notes.
Trading volumes are also reflecting the holiday lull, with popular memecoins like Dogecoin and Shiba Inu seeing relatively quiet action. This lack of liquidity can make price movements more erratic, as fewer buyers and sellers are available to absorb big trades. Still, a few altcoins have managed to stand out. Canton (CC) surged by 19.4%, ZCash (ZEC) jumped 15.9%, and Midnight (NIGHT) climbed 8.5% in the same period. On the flip side, some tokens like Sky (SKY) and Rain (RAIN) suffered losses of 8.1% and 4.9%, respectively. The rest of the market mostly traded sideways, with minor ups and downs dominating the landscape.
Looking ahead, analysts are divided on what comes next. Some, like those cited by Crypto Insiders, suggest that the calm may soon give way to renewed volatility as the new year begins. A widely-shared chart analysis points to a likely retest of a key support level in early 2026, which could serve as a turning point for the Bitcoin cycle. If that level holds, the stage might be set for another leg up; if not, further turbulence could be in store.
Meanwhile, the broader sentiment remains cautious. Investors appear to be taking a wait-and-see approach, with many opting to sit on the sidelines rather than make bold moves in such an unpredictable environment. Even the bots—automated trading strategies that have become popular among Dutch and Belgian investors—are not immune to the current uncertainty. While some strategies have delivered outsized returns in recent weeks, no one is promising easy profits in a market this choppy.
It’s worth remembering that not all price movements are driven by macroeconomic news or central bank policy. Sometimes, as Bitcoin Magazine NL points out, the market’s internal structure and the positioning of traders can create feedback loops of volatility. When leverage builds up and liquidation zones cluster around key price levels, even a small nudge can set off a chain reaction—one that’s felt across the entire crypto ecosystem.
For now, the consensus among analysts is that the market needs to stabilize within its current structure and work off some of the excess leverage before any sustainable price movement can take hold. The next few weeks will be critical in determining whether Bitcoin can shake off its recent jitters and resume its upward march, or if the rollercoaster ride is far from over.
One thing’s for sure: in the world of crypto, calm never lasts for long.
