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Bitcoin fundamentals remain strong despite late-year pullback

Published Dec. 26 2025Last Updated Dec. 26 2025

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Bitcoin’s underlying market fundamentals remained robust throughout 2025 despite weakening prices and declining sentiment toward year end, according to Strategy CEO Phong Le.

Le said long-term indicators matter more than short-term volatility for investors assessing Bitcoin’s trajectory.

The fundamentals of the market this year for Bitcoin couldn’t be better.

Phong Le said.

Bitcoin reached an all-time high of $125,100 in October before retreating by nearly 30%.

Market sentiment deteriorated sharply in December as the Crypto Fear and Greed Index entered “Extreme Fear” territory.

Le acknowledged that Bitcoin’s short-term price movements are often difficult to explain.

When you’re an investor, you think about the long term of the asset class.

Phong Le said.

He said investors focused on near-term price action should adopt a disciplined analytical approach.

Bitcoiners should be “fairly methodical and mathematical” when assessing short-term movements, Le said.

Strategy has prioritised quantitative measures such as mNAV to evaluate performance relative to its Bitcoin exposure.

The company’s mNAV, which compares market capitalisation to Bitcoin holdings, fell below 1 during the downturn.

Strategy’s mNAV was recorded at approximately 0.93, reflecting weaker equity performance relative to asset value.

Strategy currently holds 671,268 Bitcoin valued at roughly $58.6 billion.

Le said the firm’s Bitcoin treasury strategy remains unchanged despite recent price weakness.

He added that Strategy has also expanded its US dollar treasury to manage volatility.

Looking beyond market cycles, Le highlighted a structural shift in government attitudes toward Bitcoin.

He said US policy support for Bitcoin is stronger than at any previous point.

If you think about what’s happening with traditional powers of the world, the US government, the US banking system, they are all getting on board with Bitcoin.

Phong Le said.

Le described this shift as a highly bullish signal for both 2025 and 2026.

He said traditional financial institutions are increasingly trying to understand how to integrate Bitcoin.

Strategy remains committed to Bitcoin accumulation as a core balance sheet strategy.

Le said volatility should be viewed as a feature of Bitcoin’s growth phase rather than a flaw.

He argued that fundamentals, not sentiment, will ultimately define Bitcoin’s valuation.

Investors, he said, should focus less on short-term fear and more on structural adoption trends.

At the time of reporting, Bitcoin price was $87,755.07.