The Great Bitcoin Plunge: What’s Happening to Our Favorite Cryptocurrency?

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It appears that the enthusiasm for Bitcoin has taken a nosedive since October 2025. Yes, folks, we might be witnessing the dawn of a bear market, according to our pals at CryptoQuant. The trio of demand waves has been drained faster than a teapot at a charity gala, and they’ve even spilled the beans on price targets!

In the merry month of October 2025, Bitcoin demand reached a dramatic turning point – think of it as the moment when the suspenseful music in a movie hints at doom. CryptoQuant’s data shows that our beloved coin is currently traipsing below the trend line, which is not exactly a cause for celebration.

Our good friends at CryptoQuant took to X (formerly known as Twitter, if you’re not keeping up with the hip lingo) to announce that the demand boom for Bitcoin is fading faster than a magician’s rabbit. They issued a warning on December 19, confirming that the cycle was completed on three spot demand waves, which sounds rather scientific, doesn’t it? 🦸‍♂️

“Bitcoin’s demand boom is fading. This cycle ran on three spot demand waves, and the latest one looks like it’s rolling over. Since early October, demand is below trend, which can continue to be bearish for price.”

– CryptoQuant.com (@cryptoquant_com)

It seems that the new wave is crashing down like a poorly executed stand-up comedy routine. Demand has been languishing below the trend since early October, which could spell further bearishness for Bitcoin’s price. Grab your umbrellas, chaps! ☔️

Three Waves Fuel Rally – Then Fade

Once upon a time in 2025, Bitcoin saw a delightful rise, propelled by three key demand factors. It all began when U.S. spot Bitcoin ETFs made their grand entrance in January 2024, accompanied by a wave of optimism regarding the presidential election, which was as refreshing as a summer breeze.

The last guests to the party were Bitcoin treasury companies, who cheerfully drove prices up to more than 126,000 in early October. Quite the soirée, I must say! 🎉

Inflows into ETFs were higher than ever, and corporate treasuries were snapping up Bitcoin like it was the latest fashion trend. Political developments had investors feeling positively giddy.

Alas, the three catalysts now appear to be as weak as a wet noodle. In Q4, the U.S. spot ETFs turned into net sellers, shedding approximately 24,000 BTC, which corresponds to an impressive outflow of about 2.12 billion. Not quite the cash cow they once seemed! 🐄

Large wallet addresses are displaying sub-trend growth patterns reminiscent of the good old days of 2021. Addresses holding between 100-1,000 BTC are almost a nostalgic trip back in time. Corporate treasury purchasing has dropped to just nine companies in Q4, down from a bustling 53 enrolled in Q3 2025. Clearly, the party has wrapped up!

You might also like: Hayes Predicts Bitcoin Surge to $200K as Liquidity Returns – because who doesn’t love a bit of sensationalism?

Technical Breakdown Confirms Bear Phase

Recently, Bitcoin has found itself falling below its 365-day moving average – not a good look, my friend! As CryptoQuant so eloquently puts it, this is a bull-bear separator, indicating a distinct lack of market momentum. Think of it as the proverbial flat tire on an otherwise lovely Sunday drive.

Data on derivatives backs up this rather gloomy forecast. Open interest in principal exchanges has plummeted, funding rates have dipped into the murky waters below neutral, and traders are tiptoeing around options like a cat on a hot tin roof.

The price has dropped a staggering 30 percent from its lofty October peaks, settling around 88,000 as December waves goodbye. Technical indicators are whispering sweet nothings of further weakness ahead.

Historical trends suggest possible support areas where Bitcoin might find refuge. Historically, bear markets have bottomed at realized prices, and right now, the realized price of Bitcoin is hovering around 56,000. This implies a rather uncomfortable 55 percent pullback from recent highs – a decrease that would be the mildest bear correction we’ve seen. Past cycles have suffered 50-70 percent declines, so let’s count our blessings! 🙏

There’s interim support at about the 70,000 level, which provides a crucial watch point. Traders will be keeping their beady eyes peeled for signs of stabilization, like a hawk watching a field mouse. 🦅

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2025-12-21 09:25