What a Rollercoaster!

So, Bitcoin has had one wild week! Picture this: it’s like a high-speed rollercoaster, with the price zooming up to $90,000 and then plummeting down to $86,000, just hanging out there like it’s trying to catch its breath. Isn’t it fun watching crypto ride the waves?

What’s the Big Picture?

Well, folks, hold onto your popcorn because the Bitcoin saga might be taking a turn for the dramatic. The latest vibes from the crypto world suggest that things could be looking a little gray and gloomy. According to analysts, Bitcoin’s price journey is heading into bear territory. Yup, you heard that right!

CryptoQuant Weighs In

The clever folks at CryptoQuant—those wizards of blockchain analytics—are sharing their thoughts on why Bitcoin’s demand is starting to fizzle out. It seems like all that excitement we had earlier in 2025 is beginning to taper off, which usually doesn’t bode well for price stability.

Three Cheers for Demand!

CryptoQuant noted that Bitcoin binged on three major demand waves since it kicked off its bull run in 2023. These waves were spurred by the launch of U.S. spot ETFs, the outcomes of presidential elections, and a little thing we call the Bitcoin Treasury Companies bubble. But—spoiler alert!—the demand growth has been snoozing since early October 2025. Talk about a buzzkill!

The October Market Mayhem

And then bam! We had the market bloodbath on October 10, which was no fun for anyone involved. Since then, poor Bitcoin has been limping along, struggling to get back on its feet. At one point, it even dipped to $82,000. Ouch!

Where’s the Demand?

CryptoQuant suggests that the key support for Bitcoin’s price has been yanked out from under it. The demand frenzy from big shots and institutions? It’s on a downward slope. Even the U.S. ETFs, those savvy traders, have turned net sellers as we waltz into the fourth quarter of 2025. What a twist!

Looking at the Numbers

According to the data munchers at CryptoQuant, U.S. spot ETF holdings have dropped like a rock, losing 24,000 BTC in the fourth quarter. Yikes! It’s a far cry from the steady uptick we saw last year.

Feeling Risky?

The turn isn’t just affecting spot demand. Even in the wild world of Bitcoin derivatives, things have cooled off. CryptoQuant noticed that BTC’s funding rates have plummeted to their lowest level since December 2023. It seems like traders are losing their nerve and are less keen on keeping their long positions. A classic sign of a bear market, folks!

The Four-Year Cycle Rethink

So, what’s the takeaway from all this? CryptoQuant believes that Bitcoin’s four-year cycle is more about the ups and downs of demand rather than just those halvings everyone loves to talk about. Typically, a bear market follows when demand peaks and starts to tumble.

Bear Market or Baby Bear?

As things stand, the overall price structure isn’t looking too rosy either, with Bitcoin currently below its 365-day moving average. That’s usually the magic line that tells us if we’re in bull or bear territory. But hold your horses! CryptoQuant warns that the bear market might not be as drastic as it sounds. They’re pointing to a potential bottom at around $56,000, which would only mean a 55% correction from those glorious all-time highs!

The Current Situation

As I type this, BTC is hanging out at roughly $88,170, showing a nifty little 3% bounce in the last day. Let’s see where this wild ride takes us next!