Bitcoin’s mining difficulty climbed to 148.2 trillion in the final adjustment of 2025 and is projected to approach about 149 trillion around Jan. 8, 2026, as network computing power continues to grow. Faster block times and elevated competition are tightening miner margins, while Bitmain cuts ASIC prices and network hashrate shows a roughly 4% pullback into mid-December.

Bitcoin rose about 2.6% in thin holiday trade, but QCP Capital said the move lacks conviction after Friday's record options expiry saw open interest fall roughly 50%. Deribit funding jumped above 30% as dealers turned short gamma, with a push above $94,000 likely to intensify hedging flows.

On December 29, a U.S. SEC filing showed Strategy purchased 1,229 BTC for about $108.8 million during the week ending December 28, at an average price of $88,568. Bitcoin hovered near $88,000 amid the disclosure, with the buy funded entirely by proceeds from the firm's at‑the‑market stock offering. The company sold roughly 663,450 MSTR shares to generate net proceeds matching the bitcoin outlay.

During a Tetragrammaton podcast appearance, Coinbase CEO Brian Armstrong argued that Bitcoin serves as a market-based check on U.S. fiscal and monetary policy by signaling when confidence in the dollar weakens. He said this alternative asset can discourage excessive inflation and deficit spending, even as U.S. national debt nears $37.65 trillion and policymakers debate Bitcoin reserves and stablecoin regulation. Other voices, including Peter Schiff and stablecoin advocates, offered sharply different views on whether Bitcoin, dollar-backed tokens, or gold will shape the future reserve landscape.

On Monday, Peter Schiff told investors to sell Bitcoin after it rebounded above $90,000, repeating his stance that strength should be used to exit. On December 26, 2025, he called a Christmas rally a selling opportunity, and on December 28, 2025, he noted silver briefly reached $84 per ounce amid heightened volatility.

On Dec. 23, Bitmain reduced prices across hydro and immersion rigs, with TheMinerMag citing container bundles near $4 per TH and some S19 Hydro quotes around $3 per TH, while S21 models were about $7–$8 per TH before coupons. Luxor data for November showed USD hashprice averaging $39.82 per PH per day and touching $35.06 on Nov. 22, pressuring margins and shaping buyer payback math.

Bitcoin is trading around $86,700 as it approaches the end of 2025, hovering on the 100-week simple moving average that has preceded major cycle corrections. Analysts note that previous breaks below this level led to 35%–55% declines, with some warning of potential moves toward $35,000–$50,000 while others point to whale long positions as a sign of a possible new bull phase.

Heading into New Year's Eve, Bitcoin is close to ending the year with a negative yearly candle, with Alex Thorn of Galaxy Digital noting the asset is down 6.3% year-to-date and 8.25% year-over-year and would require a close above $93,389 to turn 2025 positive. He highlighted that BTC has traded about 36% below its Oct. 6, 2025 all-time high of $125,296, even as US bitcoin ETFs retained most of their cumulative inflows and long-term holders have been distributing coins to newer buyers. Thorn argued that options positioning, whale selling, competition from other macro trades, and a shift in volatility structure are shaping the current consolidation, while Galaxy projects a potential move to $250,000 by the end of 2027.