According to a recent analysis from asset manager VanEck, Bitcoin has entered a highly volatile phase, with its volatility surpassing 45%. This marks the most unstable period for the cryptocurrency since April 2025. Over the past month, Bitcoin has experienced a decline of approximately 9%, with significant selling pressure noted around November 22, when its price briefly approached $80,700.
VanEck”s analysis employs the GEO framework, which evaluates global liquidity, leverage in the crypto market, and on-chain activities to determine the overall health of Bitcoin. The latest findings indicate that while long-term interest in Bitcoin remains robust, immediate conditions have softened as of December. Key on-chain indicators have shown a downward trend, with the network”s hash rate experiencing a slight decrease, daily transaction fees falling, and the creation of new wallet addresses stagnating. These developments suggest that traders and users are adopting a more cautious approach.
Despite the prevailing market weakness, corporate buyers have increased their Bitcoin holdings. Between mid-November and mid-December, digital asset treasury firms accumulated around 42,000 BTC, marking the largest increase since mid-2025. Much of this activity is attributed to Strategy, which continues to finance Bitcoin acquisitions through equity issuance. On the other hand, interest in Bitcoin exchange-traded products (ETPs) has waned, as evidenced by a decline in total BTC holdings within these investment vehicles, indicating that some investors are opting to withdraw amidst heightened volatility.
The data reveals a distinct divide among Bitcoin holders. While medium-term investors—those who have acquired Bitcoin in recent years—have been more inclined to sell during the downturn, long-term holders, particularly those who have maintained their positions for over five years, have remained steadfast, showing limited changes in their holdings. This pattern suggests that seasoned investors maintain their confidence, while shorter-term traders react more readily to price fluctuations and market uncertainties.
Moreover, Bitcoin miners are facing increasing pressure as lower prices impact profitability. The network”s hash rate has observed its most significant short-term drop since early 2024, attributed to rising energy costs and operational adjustments in major mining regions. VanEck noted that while the hash rate of Bitcoin has grown substantially since 2020, it has faced tactical reductions in recent months. Historically, however, periods of declining hash rates have often been succeeded by stronger medium-term returns for Bitcoin. Past trends indicate that Bitcoin has typically shown improved performance over six-month spans during similar circumstances.
