2025 is about to end, and it's once again time for investors to pay attention to the year-end market trends. Looking back at Bitcoin's performance over the past decade, you'll notice an interesting phenomenon: from late December to early January, Bitcoin often experiences a notable rally. This is not a coincidence but a market pattern that can be observed.

Let's examine some iconic cases. The 2017 rally is still frequently mentioned—between December 31 and January 5, just one week, Bitcoin surged over 20%. Throughout that year, the market continued upward, eventually reaching a then-record high. At the end of 2020 and the beginning of 2021, the year-end performance was even more impressive. On December 28, Bitcoin was at $26,800, and by January 8, it had surged to nearly $42,000, a rise of over 56% in less than two weeks. During that period, institutional funds were flowing in heavily, clearly amplifying the effect.

Even in years with subdued market sentiment like 2022 to 2023, Bitcoin was not knocked down. Although the gains during the year-end period were less dramatic than before, it still managed to post an increase of over 8%, demonstrating resilience unseen in traditional assets.

Why is this time period so special? A detailed analysis suggests that it mainly results from the cyclical effects of capital allocation. At year-end, large institutions adjust their investment portfolios, and individual investors plan their strategies for the new year. Additionally, traditional financial markets usually experience less liquidity tension during the year-end, creating opportunities for digital assets to rise. Institutional investors' increasing acceptance of Bitcoin and their substantial capital inflows naturally push prices higher.