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- Anjali Belgaumkar
Anjali Belgaumkar
Writer by choice, CryptoCurrency Writer, and Researcher by chance. Currently, focusing on financial news and analysis, as well as cryptocurrency news and data. One may not call me a crypto “Enthusiast” but trust me I'm getting there.
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Qadir AKQadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Dec 22, 2025 03:03 UTC
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Bitcoin Price News: CryptoQuant Confirms Bear Market, Eyes $70000 Support
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BTC $ 88,907.14 (0.95%) 
Bitcoin enters a bear market as demand weakens and institutional investors pull back, with CryptoQuant warning prices may fall toward $70K or $56K.
Falling ETF holdings, weaker derivatives sentiment, and a break below the 365-day average signal growing downside risks for Bitcoin.
Bitcoin has entered a bear market as demand weakens and large investors reduce exposure, blockchain analytics firm CryptoQuant said on Thursday, warning prices could fall toward $70,000 or even $56,000 in the longer term.
CryptoQuant said bitcoin demand growth has slipped below its long-term trend since early October, meaning the main drivers of this cycle have already played out. The firm pointed to three major demand waves since 2023, including the launch of U.S. spot bitcoin exchange-traded funds, the U.S. presidential election, and increased buying by corporate treasury firms.
“With demand growth now rolling over, a key source of price support has disappeared,” CryptoQuant said.
ETFs and Traders Turn Cautious
Institutional demand is also weakening. U.S. spot bitcoin ETFs became net sellers in the fourth quarter of 2025, with holdings falling by about 24,000 bitcoins, compared with strong buying in late 2024. Wallets holding between 100 and 1,000 bitcoins, a group that includes ETFs and treasury companies, are growing more slowly, a pattern last seen before the 2022 bear market.
Derivatives markets are also showing lower risk appetite. Funding rates for perpetual futures have dropped to their lowest levels since December 2023, indicating traders are less willing to hold long positions, a trend usually seen during bear markets.
Bitcoin’s price has also broken below its 365-day moving average, a technical level that has historically marked the shift between bull and bear markets.
Key Support Levels at $70K and $56K
CryptoQuant said bitcoin’s four-year cycle is driven mainly by changes in demand rather than by the halving event, which reduces supply. “Demand cycles — not halvings — drive bitcoin’s four-year cycle,” the firm said.
Despite the bearish outlook, CryptoQuant said the downturn could be relatively shallow by historical standards. Previous bear market lows have often aligned with bitcoin’s realized price, currently near $56,000, implying a possible decline of around 55% from the recent record high. The firm sees intermediate support around $70,000.
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FAQs
Yes. Falling demand, reduced institutional buying, weak derivatives signals, and a drop below the 365-day average point to a bear market phase.
Major demand drivers like spot ETFs, election-related optimism, and corporate treasury buying have slowed, removing key price support.
Recovery typically begins when demand growth turns positive again, ETFs resume buying, and price reclaims long-term averages, which may take months.
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