Demand growth for Bitcoin (BTC) has slowed significantly since October 2025, signaling that Bitcoin has entered another bear market cycle, according to analysts at crypto market analysis platform CryptoQuant.
Investor demand for BTC has come in three waves during the current market cycle, with the first wave landing in January 2024, CryptoQuant analysts he said.
The first wave followed the launch of Bitcoin Exchange Traded Funds (ETFs) in the US, the second wave followed the results of the 2024 US presidential election, and the third was the BTC Treasury bubble. According to CryptoQuant:
“Demand growth has fallen below the trend since early October 2025. This indicates that most of this cycle’s incremental demand has already been realized, removing a key pillar of price support.”
Institutional demand also eased, with total Bitcoin holdings in ETFs falling by around 24,000 BTC in Q4 2025, a “stark contrast” to the accumulation behavior seen in Q4 2024, CryptoQuant said.
Funding rates, the fees traders of standing futures contracts pay to maintain their positions, also fell to their lowest levels since December 2023, another signal that BTC has entered a bear market.
The final reason analysts cited for the bearish outlook was Bitcoin’s price structure collapsing below the 365-day moving average, a critical and dynamic support level for any asset.
Related: Bitcoin rally thwarted by dim prospect of Fed rate cut, softening US macro economy
While some analysts still hope for a better 2026, the market is ruled by fear
Some analysts continue prognosis higher BTC prices in 2026, driven by increased demand and lower interest rates. Falling interest rates are positive catalysts for the prices of cryptocurrencies and other risky assets.
However, overall crypto market sentiment remains firmly in the “fear” zone, according to CoinMarketCap Crypto Fear and Greed Index.
Only 22.1% of investors expect the Federal Open Market Committee (FOMC) to cut interest rates at its next meeting in January, according to FedWatch by the Chicago Mercantile Exchange (CME). tools.
US President Donald Trump tried to pressure Federal Reserve Chairman Jerome Powell to cut interest rates in 2025 by threatening to fire Powell.
Powell’s term expires in May 2026, and Trump is considering potential replacements who are as expected reduce rates.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making a decision. Although we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph shall not be liable for any loss or damage arising from your reliance on this information.
Magazine: 6 Reasons Why Jack Dorsey Is Definitely Satoshi… and 5 Reasons He’s Not
About the Author
