⚠️ Bitcoin Enters Bear Market Territory as Institutional Demand Reverses
⚡️ Bitcoin may be entering a renewed bear market phase, according to new research from CryptoQuant, as on-chain indicators, weakening institutional flows, and tightening liquidity conditions point to broad structural downside risk. In its latest Crypto Weekly Report, CryptoQuant said multiple on-chain metrics now confirm a bear market regime. The firm noted that Bitcoin peaked near $126,000 in early October, when its Bull Score Index stood at 80, indicating a strong bullish environment. CryptoQuant pointed out a material reversal in institutional demand, particularly through U. S. spot Bitcoin ETFs. At the same point last year, ETFs had purchased roughly 46,000 BTC, but in 2026, they have instead become net sellers, offloading around 10,600 BTC.
❗️ That shift represents a 56,000 BTC demand gap compared with 2025, contributing to persistent selling pressure across the market. Despite lower prices, CryptoQuant said U. S. investor participation remains weak. The Coinbase Premium, often used as a proxy for American spot demand, has stayed negative since mid-October. Historically, sustained bull markets have coincided with a positive Coinbase Premium driven by strong U. S. buying. CryptoQuant noted that this pattern has not returned, suggesting retail and institutional dip-buying remains limited.
❓ Liquidity conditions are also tightening, according to the report. CryptoQuant pointed to USDT’s 60-day market cap growth turning negative by $133 million, marking the first contraction since October 2023. Stablecoin expansion peaked at $15.9 billion in late October 2025, and the reversal is consistent with liquidity drawdowns typically seen in bear markets.
📊 The firm added that one-year apparent spot demand growth has collapsed 93%, falling from 1.1 million BTC to just 77,000 BTC, reinforcing the slowdown in new capital entering the market.
