Bitcoin ether drop more than 22% in Q4 as December rally stalls
The more than 22% slide in Bitcoin and Ether during Q4 highlights how quickly crypto momentum can fade when liquidity dries up and investor risk appetite cools. What looked like a stabilizing phase early in the quarter shifted into sustained selling as derivatives positioning unwound and buyers stepped back. Market depth thinned across major exchanges, amplifying every downside move and reinforcing concerns about the fragility of late-year crypto rallies.
December’s anticipated year-end rebound never materialized, leaving traders to reassess key technical zones as 2026 approaches. With sentiment cautious and macro uncertainty still elevated, the focus has turned to whether Bitcoin can hold its major support levels and avoid a deeper breakdown. Early-2026 price action may set the tone for whether the market can rebuild confidence or remain under pressure.
Q4 wrap: From failed bounce to risk-off tone
Bitcoin’s December decline of about 22% its worst month since December 2018 capped a risk-off quarter. Ether likewise posted a negative Q4 (~28%), with large-cap tokens generally tracking lower as year-end profit-taking met reduced leverage. Intraday rebounds were repeatedly sold, particularly during U.S. trading hours.
In charts: bitcoin ether drop more than 22% in Q4
CoinGlass data show a steep negative print for December and the quarter, aligning with CoinDesk’s market recap on Dec. 31, 2025. Historical monthly tables highlight how December’s outcome contrasts with typical seasonal optimism. coinglass+2coinglass+2
Santa rally: Definition vs. reality
A “Santa Claus rally” refers to the historical tendency for markets to rise in the last five trading days of December and first two of January. In 2025, crypto decoupled from that seasonal pattern as liquidity dried up and risk was trimmed.
Cross-asset contrast.
Gold printed fresh records in late December, buoyed by expectations of easier Fed policy, geopolitical tensions, and sustained central-bank demand. ETF inflows have supported the move, with Asia-led buying evident into November. The divergence reinforced gold’s hedge role while bitcoin traded like a high-beta risk asset.
Support watch into the new year
Attention now centers on whether bitcoin can hold recent support zones into early January. A decisive break could validate concerns that the market needs a deeper reset before a sustained advance; stabilization could instead set up an early-cycle base if macro conditions ease.
Context & Analysis
Seasonal effects are probabilistic, not deterministic. In 2025, macro uncertainty and year-end balance-sheet cleanup overrode the typical holiday pattern. Meanwhile, central-bank and ETF demand helped gold behave as a reserve asset, while crypto’s performance remained tied to broader risk tolerance and leverage conditions.
To Sum Up
The more than 22% Q4 decline in Bitcoin and Ether has set a cautious mood heading into the new year, putting the market on alert as January trading begins. Early price action now carries outsized importance, with traders watching whether liquidity returns and selling pressure eases after a volatile quarter.
If major support levels hold, sentiment could begin to stabilize and attract selective dip-buying. But if those zones fail, it may signal that the market needs a deeper reset before any sustainable uptrend can form. The opening days of January will likely shape expectations for how quickly confidence can rebuild in 2026.
FAQs
Q : What caused the Q4 crypto pullback?
A : Thin liquidity, profit-taking, and reduced leverage pressured prices into year-end.
Q : Did the Santa rally happen in 2025?
A : No. The typical year-end window did not lift crypto this time.
Q : How bad was December for bitcoin?
A : About a 22% monthly drop, the worst since December 2018.
Q : Where did ether finish the quarter?
A : Ether fell roughly 28% in Q4 2025, tracking broader large-cap weakness.
Q : How did gold perform as crypto fell?
A : Gold hit record highs in late December on central-bank demand and ETF inflows.
Q : What is a Santa Claus rally?
A : A tendency for markets to rise in the last five trading days of December and first two of January.
Q : Is the ‘bitcoin ether drop more than 22% in Q4’ likely to continue?
A : Direction hinges on support holding and broader risk appetite early in 2026.
Facts
Event
Crypto ends Q4 2025 lower as Santa rally fizzlesDate/Time
2025-12-31T13:00:00+05:00Entities
Bitcoin (BTC), Ether (ETH), CoinDesk, CoinGlass, World Gold Council (WGC)Figures
BTC ~-22% in December; ETH ~-28% in Q4 2025; gold at record highs in late Dec. (USD/oz). Coindesk+1Quotes:
“The so-called Santa rally describes the final five trading days of December and the first two of January.” Investopedia. InvestopediaSources:
CoinDesk recap (coindesk.com), CoinGlass performance tables (coinglass.com)