The return of Donald Trump to the White House in early 2025 initially sparked strong optimism across crypto markets. During his campaign, Trump promised pro-growth economic policies and positioned the United States as a future leader in digital assets, even moving forward with initiatives like a Strategic Bitcoin Reserve and a US Digital Asset Stockpile. These signals, combined with US Federal Reserve interest rate cuts, pushed Bitcoin and Ethereum to new all-time highs in early 2025.
Bitcoin surged to nearly $126,200, while Ethereum climbed close to $5,000. However, the optimism proved short-lived. As 2025 progressed, global economic uncertainty, shifting expectations around future Fed policy, and concerns over technology stock valuations weighed heavily on investor sentiment. By February, Bitcoin entered a clear downtrend despite briefly holding above $100,000 in January.
Selling pressure intensified in March when Bitcoin dropped below $80,000. A temporary rebound followed in May after a 90-day pause in US-China tariffs, allowing BTC to reclaim the $100,000 level. Still, caution returned later in the year as markets reassessed interest rate prospects and geopolitical risks. By November 2025, Bitcoin had fallen below $85,000 and ended the year trading around $90,000, well below its peak, even though it remained higher than pre-election levels.
According to market strategist Uraz Cay of AK Yatirim, Bitcoin’s performance in 2025 fell short of what investors typically expect during a bull cycle. Despite supportive policy moves and broader integration of crypto instruments into the financial system, Bitcoin finished roughly 27% below its October peak. Cay noted that institutional adoption did not accelerate as strongly as anticipated, while precious metals dominated portfolios.
Gold and silver delivered their strongest annual returns since 1979, attracting capital that might otherwise have flowed into Bitcoin. As a result, “digital gold” failed to outperform real gold in institutional allocations. Although Bitcoin spot ETFs still held around $125 billion in assets by October 2025, their total value declined over the year, reflecting reduced appetite from large investors.
Cay also highlighted a declining correlation between Bitcoin and traditional risk assets like the Nasdaq 100, suggesting Bitcoin’s diversification potential remains intact. However, he argued that investors appear more focused on the Bitcoin-gold relationship, where precious metals continue to command attention. The Bitcoin-gold ratio, which stood above 40 in late 2024, dropped below 20 by early 2026 as gold surged.
Looking ahead, Cay believes Bitcoin still has strong potential in 2026. He suggested that if precious metals experience a meaningful correction, investor interest could rotate back toward Bitcoin. For now, though, 2025 closed with crypto markets underperforming expectations, overshadowed by the powerful rally in traditional safe-haven assets.$BTC