Here’s how Bitcoin reached new highs this year, gained state support, saw record ETF inflows and ended with a heavy October crash.
2025 has now become a year few investors will forget. Prices broke records and Governments changed their tone towards crypto.
Big money moved from the sidelines into real infrastructure and the year also showed how fast gains can vanish.
Here’s a quick walk-through of Bitcoin over the year, quarter by quarter, alongside why this year even matters to begin with.
The Year Begins With Politics and Optimism
The year opened with excitement across crypto markets. Donald Trump returned to the white house with a clear pro-crypto stance, and some of his early actions sent a strong signal to investors.
President Donald Trump also granted a pardon to Ross Ulbricht in January, and many early Bitcoin supporters saw this as symbolic.
Bitcoin even crossed $100,000 during the first week of January, which is notable because that level had stood as a psychological wall for years.
Traders pushed through it fast and confidence rose across the board.
March brought the biggest policy moment of the year. Donald Trump signed an executive order creating a U.S. Strategic Bitcoin Reserve.
The government also classified seized Bitcoin as a long-term asset and officials compared its role to gold.
Bitcoin Faces Its First Test in Q2
Optimism carried into the second quarter and adoption stories started to run in the news.
Public companies began copying the MicroStrategy playbook. Balance sheets started to include Bitcoin and some firms framed it as treasury insurance, while others treated it as a long-term store of value.
Bitcoin also felt global tension from the Tariff war between the US and China. New US tariffs on Chinese goods arrived in April. Stocks fell, and crypto followed. However, the sell-off did not last long; it showed how closely linked markets had become.
ETF structure improved during this period. Regulators approved in-kind redemptions for spot Bitcoin ETFs, which lowered friction for large investors.
Capital moved more freely while funds scaled faster.
Bitcoin Reaches Peak Euphoria in Q3
Q3 (summer) delivered the strongest phase of the year., and Bitcoin looked unstoppable as Congress advanced two major crypto bills.
The GENIUS Act set rules for stablecoins, while the Clarity Act improved definitions across digital assets. Banks and payment firms welcomed both steps.
This level of regulatory clarity unlocked pent-up demand and spot Bitcoin ETFs saw massive inflows. Roughly $12.4 billion entered these products during Q3 alone. Asset managers also treated Bitcoin like a mature allocation for the first time.
Prices responded as Bitcoin climbed through the summer and into early October. On October 6, it reached $126,198.
That has been the highest price ever recorded.
Related Reading: Iran’s Currency Crisis Sparks Bitcoin Adoption Debate
Bitcoin Suffers the October 10 Crash
Euphoria did not last as expected, as Bitcoin delivered its harshest lesson days later.
On October 10, markets snapped, and the rising US-China trade tension shook risk assets. Heavy leverage made the move worse and long positions collapsed in waves.
Bitcoin fell nearly 14% in hours as liquidations flooded the system. Roughly $19 billion in leveraged trades vanished within a single day, ranking this among the largest wipeouts in crypto history.
Altcoins suffered even more, with some pairs losing over half their value.
Overall, at the end, prices now range between $85,000 and $95,000 for most of the period with buyers stepping in at dips.
As of writing, Bitcoin is still heavily above pre-2024 levels. Still, the contrast with the October highs has been undeniable.
Source: https://www.livebitcoinnews.com/what-happened-with-bitcoin-this-year-2025-btc-roundup/
