Bitcoin Plunges, Surges Amid Korea Crisis and US ETF Approval
Bitcoin, the world's leading cryptocurrency, experienced a tumultuous month in December 2025, with political instability in Korea causing a brief plunge below $63K on Upbit. Meanwhile, BlackRock's IBIT ETF soared to over $50bn in assets, and institutional involvement in BTC surged following the US approval of spot exchange-traded funds.
The year started with Bitcoin setting consecutive record highs in 2024, with spot market volumes reaching their peak since 2021. BTC ETFs, with $36bn in net flows in their first year, now manage around $110bn in assets. However, the cryptocurrency closed the week lower due to risk assets tumbling on a hotter-than-expected US jobs report, nearing a two-month low.
Issuers continue to compete for market share by offering fee waivers, with some promotions extending as recently as November. The US Department of Justice's approval of the sale of $6.5bn BTC added to the risk-off mood, with the US government's Bitcoin holdings valued at over $23.73bn as of late 2025. Despite the volatility, Bitcoin saw significant safe haven flows during the Korean crisis, with BTC-KRW's cumulative volume delta remaining positive since early December.
The Bitcoin market structure has shifted with major institutions getting involved, following the US approval of spot BTC exchange-traded funds. While Bitcoin experienced a brief plunge due to political instability, it continues to attract significant investment, with BTC ETFs managing around $110bn in assets. Despite recent volatility, Bitcoin's safe haven status remains evident, as seen during the Korean crisis.
