The cryptocurrency market has entered a critical phase, as recent data indicates growing downside pressure across various assets. CryptoQuant’s latest analysis suggests that Bitcoin has likely transitioned into a bear phase, based on several widely tracked on-chain indicators. This new assessment has triggered renewed concerns among traders, long-term holders, and institutional participants. After months of volatile price movements, market sentiment has shifted from confident speculation to a more cautious outlook. Analysts are now increasingly relying on measurable data instead of emotional responses, transforming the discussion around a Bitcoin bear market from mere speculation to a substantiated reality.
CryptoQuant’s findings spotlight weakening demand dynamics and shifting investor behavior within the blockchain network. The report details that capital inflows have slowed while selling pressure has gradually increased—changes that often signify the early stages of prolonged market downturns. As Bitcoin has struggled to gain strong momentum, many investors have begun adjusting their expectations for the coming quarters, reflecting a more subdued outlook.
ALERT: THE CRYPTO BEAR MARKET HAS BEGUN
CryptoQuant now says Bitcoin has likely entered a bear market phase.
The report says $BTC could drop to $70K in 3–6 months, and as low as $56K later in H2 2026. pic.twitter.com/DAeOx5tXiZ
— Coin Bureau (@coinbureau) December 20, 2025
Why CryptoQuant Believes the Bitcoin Bear Market Has Begun
According to CryptoQuant’s analysis, one of the major warning signs has been the distribution activity from long-term holders. Historically, these investors tend to sell only when they foresee limited upside potential in the near future. Recent data reveals a steady increase in coins being transferred to exchanges—a pattern that often precedes heightened selling activity. This trend, which echoes behaviors observed during previous downturns, supports the argument that a bear market is emerging beneath the surface of the current price fluctuations.
A significant contributor to the decline in realized profits appears to stem from a perceived lack of opportunities for investors to capitalize on their Bitcoin investments. This declining trend indicates waning confidence among investors regarding future price appreciation. Moreover, a slowdown in the rate at which profits are realized aligns with CryptoQuant’s findings of declining Bitcoin transaction growth. This combination raises flags about the overall market momentum.
Bitcoin Price Prediction Shows Risk of Drop Toward 70,000
CryptoQuant’s projections suggest that Bitcoin’s price could slide toward the $70,000 mark within the next three to six months. This anticipation results from diminishing demand strength and slower capital rotation into Bitcoin markets. Without an influx of aggressive buying pressure, asset prices generally trend lower over time. Analysts regard the $70,000 zone as a psychological support level that may attract temporary stabilization; however, its sustainability hinges on broader macroeconomic conditions.
Current rising interest rates and cautious investor sentiment continue to burden risk assets globally. Bitcoin is especially reactive to overarching financial stress, predominantly during liquidity-driven downturns. If demand fails to recover as projected, this bearish price prediction may become more than just a pessimistic outlook—it could represent a realistic assessment of the market’s trajectory.
Extended Downside Risks Could Stretch Into 2026
Looking further ahead, CryptoQuant outlines a potentially prolonged bearish phase characterized by persistent selling pressure on Bitcoin, which could bring prices to around $56,000. This timeline parallels past bearish cycles, which often lasted longer than initially anticipated. Such lengthy cycles impact investors’ patience and decision-making processes. It’s noteworthy that nearly 40% of previous Bitcoin bear markets experienced short-lived price recoveries before hitting new lows, prompting investors to brace for similar market swings.
For a sustained bullish outlook to materialize, robust catalysts such as renewed institutional interest and favorable monetary policies must come into play. Otherwise, the risks of further downside remain paramount in the conversation around Bitcoin’s future.
What Comes Next for Bitcoin
The next steps for Bitcoin are contingent on two broad variables: the recovery of its overall demand and the stability of the larger economy. A resurgence of new buyers in the Bitcoin market, coupled with a de-escalation of financial market stress and renewed trust in the cryptocurrency realm, could facilitate a stabilization of prices. By contextualizing the ongoing Bitcoin bear market environment, investors can navigate the prevailing uncertainty more effectively. Rather than getting lost in daily price movements, focusing on broader trends and data offers clearer insights into future profitability.
