The post Bitcoin On-Chain Index Signals Structural Bear Market Shift appeared on BitcoinEthereumNews.com. Key Points: CryptoQuant analysts highlight a structuralThe post Bitcoin On-Chain Index Signals Structural Bear Market Shift appeared on BitcoinEthereumNews.com. Key Points: CryptoQuant analysts highlight a structural

Bitcoin On-Chain Index Signals Structural Bear Market Shift

Key Points:
  • CryptoQuant analysts highlight a structural bear market shift in Bitcoin.
  • Market reflects demand exhaustion with declining on-chain index.
  • Potential bottom formation if historical patterns repeat.

CryptoQuant analysts reported a continuing decline in the Bitcoin On-Chain Index (BCMI), suggesting a structural market reset rather than a simple correction, according to PANews on December 24.

This structural shift into a bear market, driven by demand exhaustion, impacts Bitcoin’s price and investor sentiment, potentially influencing future market dynamics.

BCMI Decline Signals Potential Bear Market Entry

CryptoQuant analysts report that the Bitcoin Market Cycle Index (BCMI) is declining, currently below equilibrium yet above historical lows. They perceive this as indicative of a structural market reset through price and on-chain momentum, rather than merely a cooling phase. Historically, cyclical bottoms form when BCMI hits the 0.25-0.35 range.

The current decline is viewed as the market transitioning into a bear phase amid demand exhaustion. If past patterns are indicative, a sustainable bottom is anticipated when BCMI reaches support levels seen in previous cycles. This shift may impact institutional investment strategies and on-chain activity significantly.

Historical Lows and Future Implications for BTC

Did you know? In both 2019 and 2023, Bitcoin’s market cycle reached crucial lows when the Bitcoin On-Chain Index (BCMI) plummeted to a 0.25-0.35 range, indicating strong historical precedents for market recovery patterns.

Bitcoin, symbol BTC, trades at $87,257.36 with a market cap over CryptoQuant insights and research articles and dominant market share at 59.14%. CoinMarketCap reports a 21.80% decline over 90 days, highlighting recent volatility. BTC’s circulating supply remains near its maximum limit.

Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 11:14 UTC on December 24, 2025. Source: CoinMarketCap

According to Coincu’s research, Bitcoin’s shift into a bear market phase signals potential impacts on future price stabilization. This structural change could reshape financial strategies, affecting future price stabilization. Regulatory dialogues may play a role in shaping market resilience amid cyclical lows.

Source: https://coincu.com/markets/bitcoin-on-chain-index-bear-shift/

Market Opportunity
Index Cooperative Logo
Index Cooperative Price(INDEX)
$0.5077
$0.5077$0.5077
+5.00%
USD
Index Cooperative (INDEX) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact [email protected] for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

The Channel Factories We’ve Been Waiting For

The Channel Factories We’ve Been Waiting For

The post The Channel Factories We’ve Been Waiting For appeared on BitcoinEthereumNews.com. Visions of future technology are often prescient about the broad strokes while flubbing the details. The tablets in “2001: A Space Odyssey” do indeed look like iPads, but you never see the astronauts paying for subscriptions or wasting hours on Candy Crush.  Channel factories are one vision that arose early in the history of the Lightning Network to address some challenges that Lightning has faced from the beginning. Despite having grown to become Bitcoin’s most successful layer-2 scaling solution, with instant and low-fee payments, Lightning’s scale is limited by its reliance on payment channels. Although Lightning shifts most transactions off-chain, each payment channel still requires an on-chain transaction to open and (usually) another to close. As adoption grows, pressure on the blockchain grows with it. The need for a more scalable approach to managing channels is clear. Channel factories were supposed to meet this need, but where are they? In 2025, subnetworks are emerging that revive the impetus of channel factories with some new details that vastly increase their potential. They are natively interoperable with Lightning and achieve greater scale by allowing a group of participants to open a shared multisig UTXO and create multiple bilateral channels, which reduces the number of on-chain transactions and improves capital efficiency. Achieving greater scale by reducing complexity, Ark and Spark perform the same function as traditional channel factories with new designs and additional capabilities based on shared UTXOs.  Channel Factories 101 Channel factories have been around since the inception of Lightning. A factory is a multiparty contract where multiple users (not just two, as in a Dryja-Poon channel) cooperatively lock funds in a single multisig UTXO. They can open, close and update channels off-chain without updating the blockchain for each operation. Only when participants leave or the factory dissolves is an on-chain transaction…
Share
BitcoinEthereumNews2025/09/18 00:09
What is the Outlook for Digital Assets in 2026?

What is the Outlook for Digital Assets in 2026?

The post What is the Outlook for Digital Assets in 2026? appeared on BitcoinEthereumNews.com. The crypto market cap reached $4.3 trillion in 2025 as institutions
Share
BitcoinEthereumNews2025/12/25 03:23
Pudgy Penguins’ Non-Crypto Display Wraps Las Vegas Sphere, Potentially Elevating PENGU Brand Reach

Pudgy Penguins’ Non-Crypto Display Wraps Las Vegas Sphere, Potentially Elevating PENGU Brand Reach

The post Pudgy Penguins’ Non-Crypto Display Wraps Las Vegas Sphere, Potentially Elevating PENGU Brand Reach appeared on BitcoinEthereumNews.com. Pudgy Penguins,
Share
BitcoinEthereumNews2025/12/25 03:41