Bitcoin Enters Bear Market Territory as Institutional Demand Reverses: CryptoQuant
Bitcoin could also be getting into a renewed bear market part, based on new research from CryptoQuant, as on-chain indicators, weakening institutional flows and tightening liquidity situations level to broad structural draw back danger.
In its newest Crypto Weekly Report, CryptoQuant stated a number of on-chain metrics now verify a bear market regime. The agency famous that Bitcoin peaked close to $126,000 in early October, when its Bull Score Index stood at 80, signaling a powerful bullish setting.
However, following the October 10 liquidation occasion, the index flipped bearish and has since fallen to zero, whereas BTC trades closer to $75,000. “This alerts broad structural weak point,” CryptoQuant wrote.
ETF Flows Turn From Tailwind to Headwind
CryptoQuant highlighted a cloth reversal in institutional demand, significantly by means of U.S. spot Bitcoin ETFs. At the identical level final yr, ETFs had bought roughly 46,000 BTC, however in 2026 they’ve as a substitute turn into web sellers, offloading round 10,600 BTC.
That shift represents a 56,000 BTC demand hole in contrast with 2025, contributing to persistent promoting strain throughout the market.
U.S. Spot Demand Remains Subdued
Despite decrease costs, CryptoQuant stated U.S. investor participation stays weak. The Coinbase Premium — usually used as a proxy for American spot demand — has stayed unfavourable since mid-October.
Historically, sustained bull markets have coincided with a constructive Coinbase Premium pushed by robust U.S. shopping for. CryptoQuant famous that this sample has not returned, suggesting retail and institutional dip-buying stays restricted.
Stablecoin Liquidity Shows First Contraction Since 2023
Liquidity situations are additionally tightening, based on the report. CryptoQuant pointed to USDT’s 60-day market cap progress turning unfavourable by $133 million, marking the primary contraction since October 2023.
Stablecoin growth peaked at $15.9 billion in late October 2025, and the reversal is in line with liquidity drawdowns sometimes seen in bear markets.
The agency added that one-year obvious spot demand progress has collapsed 93%, falling from 1.1 million BTC to only 77,000 BTC, reinforcing the slowdown in new capital getting into the market.
Technical Breakdown Raises Downside Risk
CryptoQuant additionally warned that Bitcoin has damaged beneath its 365-day shifting common for the primary time since March 2022. BTC has already declined 23% within the 83 days since that breakdown — a sharper transfer than the early phases of the 2022 bear market.
With key on-chain assist ranges now misplaced, CryptoQuant suggests Bitcoin may face additional draw back towards the $70,000–$60,000 vary until a brand new catalyst restores demand and liquidity.
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