In December 2025, the anticipated annual surge for the crypto market did not materialize: Bitcoin and Ethereum closed the period with significant losses and no classic Santa rally. By month-end, Bitcoin was down roughly 22%, and Ethereum declined 28.07% for Q4 according to CoinGlass. These moves demonstrated how rallies can quickly unravel amid reduced liquidity and waning risk appetite.
Bitcoin and Ethereum Decline in December 2025
Bitcoin finished December down about 22%, marking one of its weakest monthly performances in recent years. Ethereum lost 28.07% in Q4 2025 per CoinGlass summary, with major tokens following suit downward. During traditionally thin December trading days, buyers’ attempts to reclaim key levels were consistently sold off, making December appear more like a repositioning than the start of a new uptrend.
Reasons Behind Cryptocurrency Declines
The main factors noted in the market summary relate to deteriorating liquidity conditions and reduced risk appetite. Rapid profit-taking and deleveraging intensified downward pressure, especially during the holiday period when volumes are typically lower.
- Lower liquidity and decreased demand for risk caused even small sell-offs to have amplified price impacts.
- Quick profit-taking and reduced leverage usage worsened downward moves.
- US trading hours saw more active sell-offs as funds closed positions ahead of year-end.
Comparison with Other Assets
The contrast with precious metals was notable: gold reached new highs amid expectations of rate cuts and geopolitical risks, while silver and platinum also gained. This strengthened metals’ role as a safe haven during investor caution, whereas Bitcoin traded as a high-beta asset and failed to hold gains without broad risk support.
For a deeper understanding of December volatility, see the analysis of Bitcoin volatility in December 2025, and for a review of the crypto declines, read why Bitcoin and Ethereum are falling.
Outlook for 2026
The market entered the new year questioning whether Bitcoin can hold recent support levels; if support fails, the December Santa rally failure may signal the need for a deeper positional reset. Recovery depends on broader risk demand and liquidity replenishment—factors still under observation.
Why This Matters
For miners operating 1–1000 devices, December 2025’s events highlight the crypto market’s sensitivity to liquidity shifts and investor sentiment. Price drops reduce potential revenue from realized crypto and increase the chance of rapid trend reversals, impacting decisions on holding or selling mined coins.
What to Do?
Practical steps for miners in Russia should be straightforward and adaptable. First, reassess the load and profitability of each device: monitor electricity consumption relative to current coin prices. Second, define your payout strategy—whether to hold mined crypto or sell part to cover expenses.
- Check equipment efficiency and, if needed, temporarily reduce load on less profitable miners.
- Establish a selling rule (e.g., fixed portion of mined coins to cover costs) and avoid emotional decisions during volatility spikes.
- Monitor support levels and liquidity news; rely on trusted sources and analyses for decision-making.
FAQ
What is a "Santa rally"? A Santa rally is a market trend of rising prices in the last week of December and first days of January, driven by low liquidity, portfolio rebalancing, and holiday optimism.
Should miners sell during a price drop? The decision depends on your operational model: if prices threaten profitability, selling part of mined crypto to cover expenses makes sense; if focused on long-term holding, retaining some coins is advisable. Having predefined selling rules is recommended.