Bitcoin (BTC) demand progress has slowed considerably since October 2025, signaling that Bitcoin has entered into one other bear market cycle, in response to analysts at crypto market evaluation platform CryptoQuant.
Investor demand for BTC got here in three waves in the course of the present market cycle, with the primary wave touchdown in January 2024, CryptoQuant analysts mentioned.
The primary wave adopted the launch of Bitcoin exchange-traded funds (ETFs) within the US, the second wave adopted the outcomes of the 2024 US presidential election, and the third was a BTC treasury firm bubble. In accordance with CryptoQuant:
“Demand progress has fallen beneath development 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 help.”
Institutional demand has additionally contracted, with the whole quantity of Bitcoin held in ETFs declining by about 24,000 BTC in This autumn 2025, a “sharp distinction” to the buildup conduct seen in This autumn 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 purpose given by the analysts for the bearish outlook was Bitcoin’s worth construction breaking down beneath the 365-day shifting common, which is a crucial and dynamic help degree for any asset.
Associated: Bitcoin rallies thwarted by fading Fed charge reduce odds, softening US macro
Whereas some analysts stay looking forward to a greater 2026, worry grips the market
Some analysts proceed to forecast greater BTC costs in 2026, pushed by elevated demand and decrease rates of interest. Falling rates of interest are optimistic catalysts for crypto costs and different threat property.
Nevertheless, total crypto market sentiment stays firmly in “worry” territory, in response to CoinMarketCap’s Crypto Concern and Greed Index.
Solely 22.1% of buyers count on the Federal Open Market Committee (FOMC) to decrease rates of interest at its subsequent assembly in January, in response to the Chicago Mercantile Change (CME) Group’s FedWatch instrument.
US President Donald Trump tried to strain Federal Reserve Chairman Jerome Powell to decrease rates of interest in 2025 by threatening to fireplace Powell.
Powell’s time period is ready to run out in Might 2026, and Trump is reviewing potential replacements who’re anticipated to chop charges.
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