Demand Collapse Puts Bitcoin Under Pressure: What’s Next for the Digital Gold?

Bitcoin's price action is flashing red. A sudden evaporation of buying pressure has the crypto kingpin on the defensive, testing key support levels and rattling investor nerves.

The Demand Drought

Where did all the buyers go? The order books are looking thin. Institutional inflows have slowed to a trickle, retail interest appears muted, and the usual bullish catalysts aren't sparking the expected rallies. It's a classic liquidity squeeze—too many sellers, not enough takers.

Pressure Points Mounting

This isn't happening in a vacuum. Macro headwinds are blowing hard. Traders are grappling with hawkish central bank whispers and a risk-off sentiment creeping across traditional markets. When Wall Street sneezes, crypto catches a cold—or in this case, a full-blown demand flu. Some analysts, of course, saw this coming from a mile away, having perfected the art of predicting rain while standing in a downpour.

Navigating the Squeeze

The network grinds on, blocks get mined, but the price discovery mechanism is screaming one thing: conviction is wavering. Long-term holders are clenching, while short-term speculators are cutting losses. It's a brutal efficiency test for Bitcoin's core value proposition as a store of value when the 'store' part feels a bit leaky.

So, is this the big unwind or just another gut-check on the road to mainstream adoption? The market's voting with its wallet—and right now, it's keeping that wallet firmly shut. Time for the true believers to put their hash rate where their mouth is.

In brief

• The bullish momentum of Bitcoin is fading after a 2024 marked by the arrival of ETFs and institutional enthusiasm.
• CryptoQuant signals a sharp drop in demand since October 2025, indicating a possible cycle reversal.
• Three successive waves fueled the bullish market: ETFs, US elections, and adoption by listed companies.
• Investors now operate in a climate dominated by fear, wait-and-see attitudes, and increased volatility.

A drop in Bitcoin demand : indicators turn red

According to CryptoQuant, the apparent demand for Bitcoin has significantly slowed since the beginning of the fourth quarter of the year, while the crypto queen collapses after a false hope of rebound.

“Demand growth has fallen below trend since early October,” state the analysts. They specify that this dynamic marks the end of a sustained bullish cycle. This observation suggests that “the majority of incremental demand in this cycle has already been realized, thereby removing a key pillar of price support.”

The analysis also identifies three major waves that paced this bullish cycle: a first in January 2024 with the approval of bitcoin ETFs in the United States, a second driven by the US presidential election results, and a third related to speculation around listed companies accumulating BTC in their treasury.

This slowdown in momentum is confirmed by several objective indicators :

• Institutional investor disengagement : about 24,000 BTC were withdrawn from ETFs during this fourth quarter, according to CryptoQuant. This behavior is diametrically opposed to that observed at the same period in 2024, marked by net inflows ;

• A falling funding rate : the funding rates of perpetual futures contracts have dropped to their lowest level since December 2023, reflecting a clear weakening of leveraged speculative appetite ;

• A major technical break : Bitcoin has broken below its 365-day moving average, currently around $98,172, which constitutes a “critical dynamic support level.”

Taken together, these on-chain data reinforce the hypothesis of a cycle reversal and place investors facing a market now deprived of its fundamental drivers.

Psychological and macroeconomic dynamics to watch

While technical and behavioral signals show clear investor disengagement, medium-term prospects remain mixed.

Some analysts still anticipate a price recovery in 2026, especially if the US Federal Reserve eases monetary policy. This hypothesis is based on the possibility of a rate cut, which WOULD favor risk assets like cryptos. However, for now, the consensus remains cautious. According to the CME Group’s FedWatch tool, only 22.1% of investors expect a rate cut at the next FOMC meeting scheduled for January 2026.

On the political front, pressure is also mounting. President Donald TRUMP reportedly tried to pressure Jerome Powell by threatening dismissal to accelerate rate cuts before his term expires in May 2026. Such instability could paradoxically increase uncertainty in the markets.

As for the overall investor sentiment, it remains clearly pessimistic. The CoinMarketCap crypto Fear & Greed Index firmly remains in the fear zone. A mixed situation that historically sometimes precedes the most unexpected rebounds, but nothing guarantees such a scenario for now.

The slowdown in demand and unfavorable technical signals now weigh on the bitcoin price, which enters a phase of uncertainty. If the market confirms this bearish momentum, the coming months could redefine the current cycle’s balances and require a more cautious reading of the short-term outlook.

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