Bitcoin Underperformance in 2025 Amid Regulatory Changes

K33 Research’s 2025 Year-End Review, released December 23, reveals a significant divergence between cryptocurrency fundamentals and price, with Bitcoin underperforming mainstream assets despite low volatility.

The report highlights potential for regulatory changes, institutional growth, and macroeconomic shifts to drive Bitcoin’s recovery and dominance in 2026.

Bitcoin Lags Behind US Stocks and Gold in 2025

Despite strategic developments, such as the establishment of a US Bitcoin reserve and new 401(k) policies incorporating digital assets, 2025 was marked by Bitcoin underperforming compared to US stocks and gold. This underperformance is attributed to significant Bitcoin sales by long-term holders.

Market reactions indicate potential shifts, as K33 Research forecasts a constructive view for 2026. The research highlights the importance of upcoming regulatory reforms, including the expected passage of the Clarity Act. This legislative clarity could boost Bitcoin’s appeal to institutional investors, driving further market interest.

The crypto community’s reactions to the K33 Research findings vary, with some expressing concern over the sell-offs by early holders, while others remain hopeful for Bitcoin’s future performance amid anticipated US policy changes.

“Bitcoin’s 2025 underperformance is attributed to approximately 1.6 million BTC sold by long-term holders since 2024, but we expect the supply held for over two years to stabilize and begin recovering.” – Vetle Lunde, Head of Research, K33 Research.

Regulatory Shifts Could Spur 2026 Bitcoin Growth

Did you know? The projected regulatory clarity under the 2026 Clarity Act is unprecedented in the crypto sector’s evolution, potentially marking one of the most significant shifts for Bitcoin’s regulatory landscape.

Bitcoin’s current trading price stands at $87,553.99, as reported by CoinMarketCap. The market cap is recorded at 1,748,097,529,432, with a circulating supply of 19,965,937 BTC. Notably, the 24-hour trading volume saw a change of 67.32%, with Bitcoin’s price reflecting a 2.42% decrease over the past day.

Insights from the Coincu research team highlight the potential growth prospects in 2026. Projections suggest that Bitcoin may outperform traditional assets, spurred by the anticipated US regulatory changes. The combination of institutional interest and policy reform could drive notable shifts in Bitcoin’s market dynamics.