CryptoQuant: Bitcoin demand has shrunk and fallen below key moving averages, indicating the start of a bear market cycle.

According to CryptoQuant, Bitcoin demand growth has slowed significantly since October 2025, indicating that Bitcoin has entered a new bear market cycle. Analysts point out that the three waves of investment demand in this cycle (the approval of spot ETFs, the 2024 US election, and the corporate financial asset allocation bubble) have been largely released. ETF holdings decreased by approximately 24,000 BTC in the fourth quarter, and perpetual contract funding rates fell to their lowest level since December 2023. Furthermore, the price of Bitcoin has fallen below the 365-day moving average of approximately $98,172, a key dynamic support level for the asset. While some analysts anticipate a price rebound driven by interest rate cuts in 2026, market sentiment is currently fearful, with only 22.1% of investors expecting an interest rate cut at the January FOMC meeting.