Bitcoin Demand Crashes: Bear Market Officially Begins

The demand for Bitcoin has been declining since October 2025. CryptoQuant attests to the beginning of a bear market. The three important demand waves are drained. Price targets are disclosed.

In October of 2025, the demand for Bitcoin reached a bearish turning point, and it is a key cycle turning point. According to CryptoQuant data, the current demand is lower than the trend line.

CryptoQuant on X says that the demand boom for Bitcoin is declining. This warning was issued by the analytics company on December 19, which stated that the cycle was completed on three spot demand waves. 

The new wave seems to be breaking over. Demand has been below the trend since early October, and that can continue to be bearish to the price action.

Three Waves Fuel Rally – Then Fade

Bitcoin experienced a rise in 2025, catalyzed by three key demand factors. U.S. spot Bitcoin ETFs were introduced in January 2024, and there was optimism over the presidential election. 

The last in the market were Bitcoin treasury companies. These forces drove the prices to more than 126,000 in early October. 

Inflows into ETFs were higher than ever in 2024, and corporate treasuries began acquiring large amounts of Bitcoin. Investor enthusiasm was brought about by political developments.

The three catalysts are now greatly weakened. In Q4, the U.S. spot ETFs became net sellers and holdings dropped by approximately 24,000 BTC, which corresponds to the outflow of approximately 2.12 billion. 

Sub-trend growth patterns are exhibited by large wallet addresses. Addresses with 100-1,000 BTC reflect 2021 action. Corporate treasury purchasing decreased to nine companies in Q4, and just 53 companies enrolled in Q3 2025.

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Technical Breakdown Confirms Bear Phase

In recent times, Bitcoin has fallen below its 365-day moving average. As CryptoQuant puts it, this is a bull-bear separator, which indicates decreased market momentum. 

Data on derivatives backs the bearish forecast. Open interest in principal exchanges fell, funding rates fell on the lower side of neutral, and traders became more cautious about positioning in options.

The price dropped by 30 percent after the October peaks to settle at approximately 88,000 towards the end of December. Technical indicators point out further weakness in the future. 

The historical trends indicate possible support areas. Historical bear markets bottomed at realized prices, and at present, the realized price of Bitcoin is at around 56,000. 

This suggests a 55 percent pullback of recent highs- a decrease that would represent the mildest bear correction. Past cycles had experienced 50-70 percent declines in highs.

There is interim support at about the 70000 level, which provides a very crucial watch point. These thresholds are watched by traders as signs of stabilization.

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