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Friday Dec 5 2025 05:50
2 min
Current market conditions may impede Bitcoin's ability to mirror its early 2025 price surge heading into 2026, according to Ophelia Snyder, co-founder of 21Shares. "The factors driving the current volatility are unlikely to be fully resolved in the short term," Snyder stated.
Snyder added that a repeat performance in January will largely depend on prevailing market sentiment. She explained that January often experiences "renewed inflows" into Bitcoin exchange-traded funds (ETFs) as investors rebalance portfolios and reposition at the start of the year.
Snyder believes the market downturn is not "crypto specific". She suggests that Bitcoin's January performance remains uncertain, given the current low level of positive market sentiment.
It's worth noting that Bitcoin reached a peak of $109,000 on January 9, just before Donald Trump's inauguration, as traders anticipated his proposed crypto sector plans would trigger a rally.
Bitcoin subsequently reached its current high of $125,100 on October 5, before entering a downtrend following the $19 billion crypto market liquidation event on October 10. The event led many market participants to adopt a cautious short-term price outlook after initially holding more optimistic year-end price expectations.
At the time of publication, Bitcoin is trading at $92,150, a decline of almost 10% over the last 30 days, according to CoinMarketCap.
However, Snyder remains optimistic about the long term. "I am feeling more bullish as I see this most recent correction as a response to a general risk-off sentiment to broader market conditions, rather than anything crypto specific," she said.
Snyder noted several factors that could push Bitcoin to further outperform, including the expansion of crypto ETFs on major platforms, increased government adoption, and rising demand for stores of value beyond gold.
Potential catalysts that could lead to underperformance include risk-off sentiment across broader financial markets and continued strength in gold, potentially making Bitcoin less appealing to traditional investors.
However, other industry executives are more optimistic about history repeating itself. BitMine chair Tom Lee recently suggested that Bitcoin will reach a new high before the end of January 2026.
Since 2013, Bitcoin has averaged a return of 3.81% during the month of January, according to CoinGlass.
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