Bitcoin and crypto market suffered a major setback at the end of 2025. More than $1.2 trillion in value was wiped out in just 6 weeks and Bitcoin fell more than 30% to below $82,000.

Leveraged liquidations, ETF outflows and selling of passive funds added pressure. But now the panic has faded and the market looks more stable. The major reason for recovery is the Bitcoin halving of 2024, due to which the supply has become tight.

Miners are consolidating and exchange reserves are at the lowest level since 2018. The bulk of Bitcoin is locked in long-term wallets, spot ETFs and corporate treasuries. Institutional demand remains strong. Due to these structural factors, 2026 may not be a hype but growth-driven year for Bitcoin.

According to forecasts, Bitcoin can trade between $120,000–$170,000.