Bloomberg Businessweek Bitcoin Whipsaws as Traders Brace for New Year Rebound
Dec 31, 2025
Bill Barhydt, Founder and CEO of Abra, discusses the intriguing shifts in the Bitcoin market and what they could mean for 2026. He analyzes the remnants of a major selloff and likens today’s market dynamics to those of 2020. Barhydt highlights how regulatory clarity and potential rate cuts might invigorate the crypto space. He also emphasizes the importance of long-term holding among Abra's clients and forecasts key regulatory developments that could reshape adoption. The conversation is a deep dive into both the volatility and opportunities in the ever-evolving crypto landscape.
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Bitcoin Echoes 2020 Market Patterns
- Bitcoin has traded sideways despite macro and crypto-specific shocks, mirroring patterns from 2020 rather than a simple runaway rally.
- Historical rotations (gold to risk assets) suggest Bitcoin can surge after extended consolidation if liquidity returns.
Clients Hold Bitcoin, Prefer Borrowing
- Bill Barhydt describes clients who hold Bitcoin long-term on wealth platforms rather than trading on exchanges.
- Many clients prefer cold storage and ask to borrow against holdings instead of selling.
Less Float, Bigger Price Moves
- Trading volatility is driven by a smaller incremental float because large amounts of Bitcoin are locked in ETFs and wealth platforms.
- Long-term holders reduce sell pressure, so short-term swings reflect trader activity more than fundamental exits.