85% of the Cryptocurrency Market's Bear Cycle is Already Behind — DeFi Report

cryptonews.ruPublished on 2026-08-14Last updated on 2026-08-14

Abstract

According to DeFi Report, the price action of Bitcoin and altcoins strongly resembles previous periods of market bottom formation. Trading volumes in both spot and futures markets have fallen to their lowest levels since late 2019. Additional negative pressure is coming from Bitcoin miners selling their holdings, with some repurposing their energy infrastructure for artificial intelligence. Broader risk assets are also facing headwinds from the rise in 30-year US Treasury yields above 5.2% (a 20-year high) and the Federal Reserve's monetary policy. However, experts note a 15% rise in gold prices amid persistent inflation risks, indicating investor demand for safe-haven assets. DeFi Report suggests that a further increase in global liquidity could drive some of this capital into Bitcoin, boosting its price. Earlier analysis from Wintermute also pointed to signs of the crypto bear phase concluding, as major cryptocurrencies have shown resilience despite economic turbulence. The report concludes that approximately 85% of the crypto bear market cycle is now behind us.

According to the DeFi Report, the dynamics of Bitcoin and altcoins largely resemble previous periods of market bottom formation. At the same time, spot and futures trading volumes have dropped to their lowest levels since the end of 2019.

An additional negative factor for the market, according to analysts' assessment, has been Bitcoin sales by miners. Simultaneously, some miners are redirecting their energy capacities to support artificial intelligence infrastructure.

Among the factors pressuring risk assets, the DeFi Report highlighted the rise in yields on 30-year U.S. Treasury bonds above 5.2%, reaching a 20-year high, as well as the monetary policy of the Federal Reserve (Fed).

At the same time, experts noted a 15% increase in the price of gold amid persistent inflationary risks. According to specialists at the DeFi Report, this reflects investor demand for protective assets in uncertain conditions, and a further increase in global liquidity could lead to a portion of capital flowing into the Bitcoin market, driving up its price.

Previously, analysts from the British company Wintermute stated that the cryptocurrency market is showing signs of completing the bearish phase, as the largest cryptocurrencies have maintained resilience amidst economic turbulence.

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Related Questions

QAccording to the DeFi Report, what percentage of the crypto market's bear cycle is estimated to be already behind us?

AAccording to the DeFi Report, 85% of the crypto market's bear cycle is estimated to be already behind us.

QWhat has happened to spot and futures trading volumes, and how significant is this decline?

ASpot and futures trading volumes have fallen to their lowest levels since the end of 2019.

QWhat are two key factors putting pressure on risk assets, as highlighted in the DeFi Report?

ATwo key factors are the rise in 30-year US Treasury bond yields above 5.2% (a 20-year high) and the monetary policy of the US Federal Reserve (Fed).

QWhy does the report see the 15% rise in gold prices as a potential positive sign for Bitcoin?

AThe rise in gold reflects investor demand for safe-haven assets during uncertainty. The report suggests that further increases in global liquidity could channel some of this capital into the Bitcoin market, potentially driving up its price.

QWhat is one reason analysts point to for the crypto market potentially completing its bear phase?

AAnalysts from Wintermute point to the resilience of major cryptocurrencies amidst economic turmoil as a sign the bear phase may be ending.

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1.9k Total ViewsPublished 2025.05.13Updated 2025.05.13

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