**Crypto Analysts Warn: Short-Term Dip Ahead for Bitcoin and Altcoins**

Cryptocurrency markets might be heading for a short-term decline, according to leading blockchain analysts. While long-term growth potential remains strong, current trends suggest that investor demand is slowing down—especially from big institutions and large holders. This drop in interest could signal a temporary bear market phase.

**Understanding the Demand Waves Behind Crypto Prices**

In the world of crypto, price largely depends on demand. When more people want to buy, prices go up. When interest fades, markets tend to fall. Analysts at CryptoQuant have identified three major “demand waves” that pushed crypto prices higher in the current cycle:

1. **Bitcoin ETFs in Early 2024**: The launch of spot Bitcoin ETFs attracted a lot of institutional money and helped kickstart a new rally.
2. **U.S. Elections and Political Support**: After the 2024 U.S. elections, political backing for crypto increased, especially with Trump’s pro-crypto stance. This gave altcoins a strong boost.
3. **Corporate Treasury Boom**: In mid-2024, big companies started adding Bitcoin and Ethereum to their balance sheets. Ethereum even reached new all-time highs (ATH) in June, though issues like net asset value (MNAV) limits slowed further growth.

These demand waves drove significant price increases, but now that momentum seems to be fading.

**Signs of Weakening Crypto Market**

Without new waves of demand, experts believe that crypto prices may drop in the short term. Here are the key signs they’re watching:

– **Institutional Selling**: Big investors like ETFs have gone from buying to selling. In late 2025, U.S. Bitcoin ETFs sold off about 24,000 BTC after a year of strong accumulation in 2024.
– **Whale Wallets Slowing Down**: Addresses holding 100 to 1,000 BTC—which often belong to institutions or corporate treasuries—are growing at a slower pace. This echoes patterns seen before the last bear market in 2022.
– **Derivatives Market Signals**: Funding rates for futures contracts (a measure of investor sentiment) have dropped to their lowest levels since December 2023. Low funding rates usually mean fewer traders are willing to bet on rising prices.
– **Technical Breakdown**: Bitcoin has fallen below its 365-day moving average, a key long-term trend line that often marks the difference between bull and bear markets.

**What’s Driving This Trend?**

Contrary to popular belief, the four-year cycle in Bitcoin isn’t just about the halving events. Analysts now say it’s more about changes in demand—how quickly interest is growing or shrinking. Right now, demand is contracting, which is why prices are trending down.

**What’s Next for Bitcoin?**

Analysts predict that Bitcoin could find support around $70,000 in the near term. If the decline continues, the next strong support level may be around $56,000—close to what’s known as the “realized price,” or the average price paid by investors.

**Final Thoughts**

While this dip might seem concerning, it’s part of a natural cycle. Long-term potential still exists, especially if new demand waves emerge later on. But for now, investors should be cautious and keep an eye on institutional behavior and technical indicators.

**Key Takeaways:**
– Crypto demand is slowing down after three major surges in 2024.
– Institutions are selling more than buying.
– Funding rates and technical signals suggest a short-term downturn.
– Bitcoin may drop to $70K or even $56K if demand doesn’t pick up soon.
– Long-term growth depends on future waves of investor interest.

Remember: Cryptocurrency investments carry risk due to high volatility. Always do your own research before making financial decisions.