Bitcoin Braces for First Annual Loss Since 2022
Bitcoin, the world’s largest cryptocurrency, is heading towards its first annual loss since 2022, according to data cited by Reuters. Global economic pressure, uncertainty surrounding tariff policies and a shift in investor sentiment away from risk assets have slowed Bitcoin’s momentum towards the end of 2025.
Despite hitting new record highs earlier in the year, Bitcoin has failed to maintain price stability since October. On a year-to-date basis, the cryptocurrency is currently down by more than six percent.
Bitcoin prices surged at the start of the year following the election of US President Donald Trump, who is seen as crypto-friendly. However, markets later experienced a sharp downturn amid the imposition of new tariffs on Chinese goods and threats of tighter controls on the export of key software. These developments triggered record levels of liquidation in the highly leveraged crypto market.
Analysts say that as institutional investment increases, Bitcoin is increasingly behaving like other risk assets such as equities. As a result, concerns over interest rates, tariff policies and valuations in the artificial intelligence sector are also weighing on the crypto market. At the same time, investors are closely watching potential regulatory decisions under the Trump administration.
DBTech/BMT/OR
