Bitcoin (BTC) crossed $88,000 on Christmas Day with a modest 1.46% gain over 24 hours, trading at $88,020 as of 3:26 p.m. UTC, according to Binance market data.
The cryptocurrency spent the holiday in a familiar range between $85,000 and $90,000.
Bitcoin remains roughly 30% below its October peak above $126,000.
The Christmas session featured reduced liquidity as traders stayed away from markets.
What Happened
Bitcoin maintained range-bound trading through the holiday despite the uptick.
Multiple sources confirmed prices hovering between $87,000 and $88,000 throughout December 25.
Trading volumes declined as institutional participants stepped away for the holidays.
Perpetual open interest for Bitcoin futures dropped $3 billion during the holiday period, according to QCP Capital.
The reduced leverage created conditions where smaller orders could generate larger-than-normal price swings.
A flash crash earlier in the day briefly sent Bitcoin to $24,111 on Binance's BTC/USD1 trading pair before recovering within seconds.
The anomaly appeared isolated to the USD1 stablecoin pair and did not affect other major BTC pairs.
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Why It Matters
Holiday liquidity conditions have heightened Bitcoin's sensitivity to sudden moves.
A record $23.7 billion in Bitcoin options contracts expires December 26 on derivatives exchange Deribit.
The massive expiry represents more than 50% of total open interest and could amplify volatility when liquidity returns.
QCP Capital analysts noted downside positioning has eased, with put interest at $85,000 declining while calls at $100,000 persist.
Bitcoin is posting one of its weakest year-end performances in seven years.
The cryptocurrency declined 22.8% in Q4 2025, marking the second-worst fourth quarter on record.
Gold gained 69% in 2025 while Bitcoin posted a 5% loss for the year.
Spot Bitcoin ETF outflows totaled approximately $1.13 billion in mid-December, adding pressure into year-end.
Analysts expect thin trading conditions to persist through December 31 before liquidity normalizes in January.
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