The post Bitcoin (BTC) Faces Weakening Demand Amid Economic Uncertainty appeared on BitcoinEthereumNews.com. Rongchai Wang Dec 08, 2025 14:05 Bitcoin struggles with weakening demand and structural softness, while global economic indicators show mixed signals. Regulatory developments in the UK and US aim to integrate digital assets. Bitcoin is currently navigating a challenging phase characterized by declining spot demand and persistent structural softness, according to Bitfinex Alpha. Despite a slight recovery from recent lows, Bitcoin (BTC) remains confined within a narrow trading range of $84,000 to $91,000. This stabilization occurs as the S&P 500 nears record highs, highlighting a growing decoupling between Bitcoin and traditional risk assets. Market Dynamics and Investor Sentiment On-chain analysis reveals that over seven million BTC are held at an unrealized loss, reminiscent of the market conditions experienced during early 2022’s consolidation period. This situation underscores the difficulties faced by the market in overcoming its True Market Mean, a critical threshold that distinguishes between mid-cycle fatigue and a full-blown bear market. Nonetheless, capital inflows remain slightly positive, providing a buffer against potential downturns. Meanwhile, spot-side demand has markedly declined, with US Bitcoin ETFs experiencing continuous outflows. The Cumulative Volume Delta across major exchanges has turned negative, indicating that traders are selling into strength rather than accumulating, further complicating the market outlook. Economic and Regulatory Developments The broader economic landscape in the United States presents mixed signals. Recent data indicates a slowing economy, with consumer spending stagnating and inflation persisting at 2.8% year-over-year. These factors complicate expectations for a potential interest rate cut by the Federal Reserve, as officials remain divided over whether economic conditions justify easing. Labour and business indicators paint a similarly uneven picture. Although private-sector hiring fell unexpectedly in November, jobless claims reached their lowest levels since 2022. The services sector continues to expand, supported by strong demand and rising… The post Bitcoin (BTC) Faces Weakening Demand Amid Economic Uncertainty appeared on BitcoinEthereumNews.com. Rongchai Wang Dec 08, 2025 14:05 Bitcoin struggles with weakening demand and structural softness, while global economic indicators show mixed signals. Regulatory developments in the UK and US aim to integrate digital assets. Bitcoin is currently navigating a challenging phase characterized by declining spot demand and persistent structural softness, according to Bitfinex Alpha. Despite a slight recovery from recent lows, Bitcoin (BTC) remains confined within a narrow trading range of $84,000 to $91,000. This stabilization occurs as the S&P 500 nears record highs, highlighting a growing decoupling between Bitcoin and traditional risk assets. Market Dynamics and Investor Sentiment On-chain analysis reveals that over seven million BTC are held at an unrealized loss, reminiscent of the market conditions experienced during early 2022’s consolidation period. This situation underscores the difficulties faced by the market in overcoming its True Market Mean, a critical threshold that distinguishes between mid-cycle fatigue and a full-blown bear market. Nonetheless, capital inflows remain slightly positive, providing a buffer against potential downturns. Meanwhile, spot-side demand has markedly declined, with US Bitcoin ETFs experiencing continuous outflows. The Cumulative Volume Delta across major exchanges has turned negative, indicating that traders are selling into strength rather than accumulating, further complicating the market outlook. Economic and Regulatory Developments The broader economic landscape in the United States presents mixed signals. Recent data indicates a slowing economy, with consumer spending stagnating and inflation persisting at 2.8% year-over-year. These factors complicate expectations for a potential interest rate cut by the Federal Reserve, as officials remain divided over whether economic conditions justify easing. Labour and business indicators paint a similarly uneven picture. Although private-sector hiring fell unexpectedly in November, jobless claims reached their lowest levels since 2022. The services sector continues to expand, supported by strong demand and rising…

Bitcoin (BTC) Faces Weakening Demand Amid Economic Uncertainty

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Rongchai Wang
Dec 08, 2025 14:05

Bitcoin struggles with weakening demand and structural softness, while global economic indicators show mixed signals. Regulatory developments in the UK and US aim to integrate digital assets.

Bitcoin is currently navigating a challenging phase characterized by declining spot demand and persistent structural softness, according to Bitfinex Alpha. Despite a slight recovery from recent lows, Bitcoin (BTC) remains confined within a narrow trading range of $84,000 to $91,000. This stabilization occurs as the S&P 500 nears record highs, highlighting a growing decoupling between Bitcoin and traditional risk assets.

Market Dynamics and Investor Sentiment

On-chain analysis reveals that over seven million BTC are held at an unrealized loss, reminiscent of the market conditions experienced during early 2022’s consolidation period. This situation underscores the difficulties faced by the market in overcoming its True Market Mean, a critical threshold that distinguishes between mid-cycle fatigue and a full-blown bear market. Nonetheless, capital inflows remain slightly positive, providing a buffer against potential downturns.

Meanwhile, spot-side demand has markedly declined, with US Bitcoin ETFs experiencing continuous outflows. The Cumulative Volume Delta across major exchanges has turned negative, indicating that traders are selling into strength rather than accumulating, further complicating the market outlook.

Economic and Regulatory Developments

The broader economic landscape in the United States presents mixed signals. Recent data indicates a slowing economy, with consumer spending stagnating and inflation persisting at 2.8% year-over-year. These factors complicate expectations for a potential interest rate cut by the Federal Reserve, as officials remain divided over whether economic conditions justify easing.

Labour and business indicators paint a similarly uneven picture. Although private-sector hiring fell unexpectedly in November, jobless claims reached their lowest levels since 2022. The services sector continues to expand, supported by strong demand and rising backlogs, although hiring within the sector has contracted.

In a significant development, Vanguard has shifted its stance on cryptocurrencies by allowing clients to trade third-party crypto ETFs and mutual funds, including those linked to Bitcoin and Ethereum. This move, although not involving the creation of proprietary crypto products, reflects growing confidence in the maturity of crypto markets and increasing investor demand.

Governments are also evolving their approach to digital assets. The UK recently passed the Property (Digital Assets etc.) Act 2025, recognizing cryptocurrencies as a distinct form of personal property. This legislation provides clearer rights in cases of theft, insolvency, and inheritance, aiming to make the UK more attractive for digital-asset businesses. Similarly, the United States is advancing regulatory frameworks, with the Commodity Futures Trading Commission authorizing the first-ever listing of spot cryptocurrency products on federally regulated exchanges. These efforts are part of a broader trend towards integrating digital assets into established financial and legal systems globally.

Image source: Shutterstock

Source: https://blockchain.news/news/bitcoin-btc-weakening-demand-economic-uncertainty

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