Bitcoin Misses the Santa Rally as Gold and Stocks Soar to Record Highs

Bitcoin Misses the Santa Rally

The end of 2025 has brought plenty of holiday cheer to stock and precious metal investors — but not for Bitcoin holders. Despite hopes for a festive year-end surge or “Santa rally,” Bitcoin fell around 2% over the last 24 hours, trading near $87,305 on Saturday, December 27.

The world’s leading cryptocurrency has now lost nearly 6% year-to-date, struggling to recover from its early-October collapse. In contrast, gold and U.S. equities have soared to all-time highs, highlighting a widening performance gap between traditional and digital assets.

Gold and Stocks Hit Record Highs

While Bitcoin stumbled, gold prices rallied to record territory, climbing to approximately $4,520–$4,530 per ounce — a staggering 72% increase compared to last year. The surge was driven by persistent geopolitical uncertainty and renewed demand for safe-haven assets.

Meanwhile, the S&P 500 and the Dow Jones Industrial Average both registered new milestones. The S&P 500 notched its 39th record close of the year, while the Dow recorded its 19th, reflecting strong investor sentiment amid expectations of lower interest rates in early 2026.

The Aftermath of the October Crash

Bitcoin’s challenges trace back to October’s sharp correction, when prices plunged from a record high above $125,000 to briefly dip below $105,000. The selloff wiped out over $19 billion in market liquidations, affecting roughly 1.6 million traders globally.

The trigger? President Trump’s surprise announcement of 100% tariffs on Chinese goods, which sparked a broad market selloff and dented risk appetite overnight. Since then, Bitcoin has struggled to attract fresh momentum or meaningful inflows.

Liquidity Concerns Deepen

According to a recent report by FTI Consulting, Bitcoin’s order-book depth on major exchanges shrank by more than 90% after the October crash. This thinning liquidity, combined with heightened volatility, makes the market vulnerable to large price swings.

Standard Chartered’s Geoff Kendrick noted that “the wave of enthusiasm from digital asset traders has faded,” prompting the bank to slash its Bitcoin price target for 2026 from $300,000 to $150,000.

Adding pressure, BlackRock’s IBIT ETF saw $2.3 billion in outflows last month — its largest redemption since inception — suggesting institutional caution may be returning to crypto markets.

Divided Outlook for 2026

The outlook for Bitcoin remains split between optimism and caution heading into 2026.

Bullish analysts, including Grayscale and Bitwise CIO Matt Hougan, believe a new growth phase is still on the horizon. They expect rate cuts and improving macro conditions to boost digital asset demand.

However, skeptics warn that without stronger liquidity and renewed ETF inflows, Bitcoin could still retest the $75,000 level before stabilizing.

On the policy front, the Trump administration’s January 2025 executive order supporting “the responsible growth and use of digital assets and blockchain technology” could still provide a long-term foundation for the industry — but for now, sentiment remains fragile.

What to Watch in Early 2026

Investors will closely monitor:

U.S. Federal Reserve policy shifts and any rate adjustments.
ETF inflows and institutional participation returning to the crypto space.
Global liquidity conditions, particularly in Asia and Europe.
Potential regulatory announcements from major economies influencing crypto adoption.

While the holiday season failed to deliver the Santa rally many hoped for, the first quarter of 2026 could set the stage for Bitcoin’s next major move.