Bitcoin Demand Growth Slows Since Early October, Bear Market Signals Emerge; Mid-Term Support Near $70,000

Bitcoin demand growth has slowed markedly since early October 2025, potentially signaling a bear market, CryptoQuant said in a December 20 report. The firm identified three major spot-demand waves since 2023 tied to U.S. spot ETF launches, the U.S. presidential election, and a bubble among Bitcoin treasury companies, noting demand has remained below trend since early October and suggesting most incremental demand in the current cycle has been realized. In derivatives, the 365-day moving average of perpetual futures funding rates dropped to its lowest since December 2023, reflecting reduced willingness to maintain long positions, a pattern CryptoQuant said typically occurs in bear markets. Technically, Bitcoin has fallen below its 365-day moving average, with historical markers placing bear-market bottoms near the realized price of around $56,000, implying a potential 55% drawdown from recent highs, which would be the smallest ever, and mid-term support expected near $70,000.