Bitcoin demand cooling off does feel like a tough phase.

ETF outflows and weak funding rates explain the fear in market.

Maybe rate cuts later can help, but patience looks key now.

According to Odaily, monitoring by CryptoQuant indicates a significant slowdown in Bitcoin demand since October 2025, suggesting the cryptocurrency has entered a new bear market cycle. Analysts highlight that three waves of investment demand—spot ETF approval, the 2024 U.S. presidential election, and corporate financial asset allocation bubbles—have largely been exhausted. In the fourth quarter, ETF holdings decreased by approximately 24,000 BTC, and perpetual contract funding rates have dropped to their lowest level since December 2023. Additionally, Bitcoin's price has fallen below the 365-day moving average of approximately $98,172, a critical dynamic support level for the asset. While some analysts remain hopeful that interest rate cuts in 2026 could lead to a price recovery, current market sentiment is fearful, with only 22.1% of investors expecting a rate cut at the January FOMC meeting.