Bitcoin is currently facing bearish trends as institutional interest diminishes and essential market indicators shift toward negative outcomes.

Recent insights from the analytics firm CryptoQuant reveal that the Bitcoin market has descended to noticeably bearish conditions within the bull cycle that commenced in January 2023.

CryptoQuant’s Bull Score Index has dropped to a low of 20 out of 100, with Bitcoin’s price significantly falling below the crucial 365-day moving average of $102,000, a technical benchmark indicating a ‘final bearish signal’ that hints at the beginning of the 2022 bear market.

This slump is attributed to diminishing institutional demand, particularly from firms like Michael Saylor’s Strategy, which has reduced its purchase rate, alongside a slump in inflows to exchange-traded funds (ETFs).

Corporate Bitcoin Demand Declines

Despite Strategy’s recent acquisition of 8,178 BTC valued at approximately $835 million, this amount is relatively modest compared to previous significant purchases, as noted by CryptoQuant’s head of research Julio Moreno on social media.

“Treasury companies have basically stopped buying; some have even sold part of their holdings,” Moreno said, referencing firms like Metaplanet, whose last Bitcoin purchase occurred in September.

Alongside the decline in corporate buying, Bitcoin ETFs are also feeling the pinch, with year-to-date inflows dropping to $27.4 billion, around 30% lower than last year’s total of $41.7 billion, according to CoinShares.

Market Catalysts No Longer Present

CryptoQuant highlighted that past market-moving events such as Donald Trump’s presidential victory in 2024, which propelled Bitcoin over the $100,000 mark for the first time, are no longer on the horizon.

“What new catalysts could prompt a resurgence in Bitcoin demand in 2026? Major developments seem unlikely, or are already factored into the market,” the report mentions.

This downtrend appears to align with the expected four-year cycle of Bitcoin, suggesting the current cycle (2022-2025) is nearing its conclusion.

“Does this mean Bitcoin will quickly collapse? Not at all. Currently, Bitcoin is experiencing a 28% drop and is nearing significant support levels of $90,000 to $92,000,” stated the report, emphasizing past occurrences where prices have rebounded 40%-50% in the following months.

According to Coinbase, Bitcoin briefly dipped below $90,000 recently, reaching a low of $88,400, the lowest level since April 2025, but has since experienced a slight recovery, trading around $91,650 as of this publication.