Bitcoin (BTC) demand development has slowed considerably since October 2025, signaling that Bitcoin has entered into one other bear market cycle, in keeping with analysts at crypto market evaluation platform CryptoQuant.
Investor demand for BTC got here in three waves throughout the present market cycle, with the primary wave touchdown in January 2024, CryptoQuant analysts said.
The primary wave adopted the launch of Bitcoin exchange-traded funds (ETFs) within the US, the second wave adopted the results of the 2024 US presidential election, and the third was a BTC treasury firm bubble. In keeping with CryptoQuant:
“Demand development has fallen beneath pattern since early October 2025. This means that the majority of this cycle’s incremental demand has already been realized, eradicating a key pillar of worth assist.”
Institutional demand has additionally contracted, with the full quantity of Bitcoin held in ETFs declining by about 24,000 BTC in This fall 2025, a “sharp distinction” to the buildup conduct seen in This fall 2024, CryptoQuant mentioned.
Funding charges, the charges paid by perpetual futures merchants to keep up their positions, have additionally declined to their lowest ranges since December 2023, one other sign that BTC has entered a bear market.
The ultimate motive given by the analysts for the bearish outlook was Bitcoin’s worth construction breaking down below the 365-day moving average, which is a vital and dynamic assist stage for any asset.
Associated: Bitcoin rallies thwarted by fading Fed rate cut odds, softening US macro
Whereas some analysts stay longing for a greater 2026, concern grips the market
Some analysts proceed to forecast increased BTC costs in 2026, pushed by elevated demand and decrease rates of interest. Falling rates of interest are positive catalysts for crypto prices and different danger property.
Nevertheless, total crypto market sentiment stays firmly in “concern” territory, in keeping with CoinMarketCap’s Crypto Worry and Greed Index.
Solely 22.1% of buyers anticipate the Federal Open Market Committee (FOMC) to decrease rates of interest at its subsequent assembly in January, in keeping with the Chicago Mercantile Trade (CME) Group’s FedWatch tool.
US President Donald Trump tried to stress Federal Reserve Chairman Jerome Powell to lower interest rates in 2025 by threatening to fireside Powell.
Powell’s time period is ready to run out in Could 2026, and Trump is reviewing potential replacements who’re expected to chop charges.
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