CRYPTO NEWS UPDATE – Bitcoin Faces First Annual Loss Since 2022

In 2025, Bitcoin is on track to record its first yearly decline since 2022, falling over 6% as macroeconomic and geopolitical pressures weighed on markets. The drop reflects sensitivity to broader financial conditions, with BTC trading substantially lower than its October peak despite earlier high levels. This performance underscores a growing correlation between crypto and traditional risk assets, influenced by policy decisions and market sentiment. Reuters

Why this matters

This trend signals a shift in how investors perceive Bitcoin — increasingly as a risk asset rather than an uncorrelated digital store of value. Annual losses can dampen speculative interest and shift focus toward long-term adoption fundamentals and institutional behavior.

Context & broader effects

The decline comes amid regulatory developments and market uncertainties that have tempered enthusiasm.

Simultaneously, firms and startups are still advancing crypto infrastructure and adoption, such as a new $8M funding round for Lightning payments.

Futures data suggest trader positioning remains nuanced, reflecting cautious sentiment.

This blend of macro pressure and evolving market structure sets the backdrop for how crypto markets may approach 2026.