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Current Bear Market Performance Worse Than 2022: Analysts

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8 Factors Impacting Crypto Markets


Bitcoin’s decline into a bear market has been faster than in the past cycle, according to analysts.  

“Bitcoin’s bear market is off to a weaker start than 2022,” reported on-chain analytics platform CryptoQuant on Wednesday.

Since falling below the 365-day moving average in November, Bitcoin is down 23% in just 83 days, compared to a 6% decline over the same period in early 2022, they added before stating “momentum is deteriorating faster this cycle.”

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“This performance is worse than at the start of the previous bear market in January 2022.”

Bitcoin Bear Market Deepens

Bitcoin peaked at $126,000 in early October with the “Bull Score Index” at 80, but following the Oct. 10 liquidation event, the index turned bearish and has now fallen to zero while the price dumped to $71,000, “signaling broad structural weakness,” CryptoQuant reported. The platform also stated that Bitcoin “has lost key support levels” and may be targeting $70,000 to $60,000.

Bitcoin was rejected three times at the “Traders’ On-chain Realized Price,” a key on-chain support and resistance level. It also recently crossed below the lower band of this same metric, which acted as a support during the bull market.

Meanwhile, Santiment reported that sentiment “has turned extremely bearish toward Bitcoin and Ethereum” following the major downswing this past week.

“As we know, markets move opposite to the fear and greed of retail traders. There remains a strong argument for a short-term relief rally as long as the small-trader crowd continues to show disbelief toward cryptocurrency as a whole.”

“The BTC bear market rages on as profitability resets, realised losses rise, spot demand stays weak, and leverage unwinds,” reported Glassnode.

Meanwhile, the crypto “Fear and Greed Index” has fallen back to all-time lows around 12 as sentiment collapses and panic selling continues.

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Crypto Market Outlook

Total capitalization has declined again today, falling 4.4% to $2.53 trillion, its lowest level since April 2025. Further losses will see it back to bear market lows from 2024.

Bitcoin dumped again, tanking below $71,000 during early trading in Asia on Thursday morning. BTC is now back at November levels and heading towards support at around $65,000.

Ether is in meltdown, crashing below $2,100 and failing to recover, also on a path to previous cycle lows.

Altcoins are not even worth mentioning, tanking even harder than the top two, with most now at 80% down from their peaks.

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CFTC Formally Withdraws Biden-Era Proposal to Ban Sports and Political Prediction Markets

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The agency called the 2024 rule a “frolic into merit regulation” and said it will pursue new rulemaking grounded in the Commodity Exchange Act to provide clarity for prediction market operators.

Commodity Futures Trading Commission Chairman Michael S. Selig has formally withdrawn a 2024 notice of proposed rulemaking that would have banned political, sports and war-related event contracts, marking the clearest signal yet that the agency intends to regulate prediction markets rather than restrict them.

Key Takeaways:

– The CFTC scrapped both its 2024 proposal to ban event contracts and a 2025 staff advisory that had warned firms away from sports-related markets.

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– Chairman Selig dismissed the earlier ban as a politically driven “frolic into merit regulation” and committed to building a new rules-based framework.

– The move lands as Kalshi, Polymarket and Coinbase fight a wave of state lawsuits alleging their sports contracts amount to unlicensed gambling.

The agency also rescinded CFTC Staff Letter 25-36, a September 2025 advisory that had warned regulated entities to exercise caution when facilitating sports-related event contracts due to ongoing litigation. In the remarks following the decision, Selig said:

“The 2024 event contracts proposal reflected the prior administration’s frolic into merit regulation with an outright prohibition on political contracts ahead of the 2024 presidential election.”

The CFTC does not intend to issue final rules under the withdrawn proposal, according to the press release.

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Instead, the commission will advance a new rulemaking framework anchored in the Commodity Exchange Act, aiming to establish clear standards for event contracts and provide legal certainty for exchanges and intermediaries.

Selig Frames Withdrawal as First Step Toward Comprehensive Event Contracts Rulemaking

The announcement follows remarks Selig delivered on January 29 at a joint CFTC-SEC harmonization event alongside Securities and Exchange Commission Chairman Paul Atkins. As reported, Selig used his first public speech as chairman to outline a broader reset of the agency’s approach to prediction markets.

“For too long, the CFTC’s existing framework has proven difficult to apply and has failed our market participants,” Selig said. “That is something I intend to fix by establishing clear standards for event contracts that provide certainty to market participants.”

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Selig also directed staff to reassess the commission’s participation in pending federal court cases where jurisdictional questions are at issue, signaling that the CFTC may intervene to defend its exclusive authority over commodity derivatives.

Prediction Market Platforms Navigate Booming Growth and State-Level Legal Battles

The withdrawal arrives as prediction markets experience rapid expansion and intensifying regulatory friction. Combined trading volumes on Polymarket and Kalshi, the two largest platforms, reached $37 billion in 2025, drawing in major exchanges eager to compete.

Coinbase launched prediction markets through a partnership with Kalshi, a federally regulated designated contract market, in late January. Crypto.com recently spun out its prediction business into a standalone platform called OG. Polymarket returned to the U.S. market in December after receiving CFTC no-action relief, and Gemini secured a designated contract market license for its Titan platform.

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Meanwhile, state gaming regulators have pushed back. Nevada filed a civil enforcement action against Coinbase this week, arguing that event contracts tied to sports constitute unlicensed gambling. Coinbase has sued regulators in Michigan, Illinois and Connecticut over similar claims.

The NCAA has also urged the CFTC to halt college sports prediction trading, warning that the sector exposes student-athletes to integrity risks and operates outside state-level safeguards.

Selig, who was sworn in on December 22, has not provided a firm timeline for the new rulemaking, but positioned event contracts as a priority alongside the agency’s broader “Project Crypto” initiative with the SEC.

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Bitcoin ETFs ‘Hanging In There’ Despite Price Plunge: Analyst

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Bitcoin ETFs 'Hanging In There' Despite Price Plunge: Analyst

US-based spot Bitcoin exchange-traded fund (ETF) holders are showing relatively firm conviction despite a four-month Bitcoin downtrend, according to ETF analyst James Seyffart.

“The ETFs are still hanging in there pretty good,” Seyffart said in an X post on Wednesday.

While Seyffart said that Bitcoin (BTC) ETF holders are facing their “biggest losses” since the US products launched in January 2024 — at a paper loss of around 42% with Bitcoin below $73,000 — he argues the recent outflows pale in comparison to the inflows during the market’s peak. 

Bitcoin ETF holders are “underwater and collectively holding.”

Before the October downturn, spot Bitcoin ETF net inflows were around $62.11 billion. They’ve now fallen to about $55 billion, according to preliminary data from Farside Investors.

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“Not too shabby,” Seyffart said. 

Source: James Seyffart

Meanwhile, investment researcher Jim Bianco said in an X post on Wednesday that the average spot Bitcoin ETF holder is 24% “underwater and collectively holding.”

Bitcoiners are being “very short-sighted.”

Crypto analytics account Rand pointed out in an X post on Tuesday that this is “the first time in history there have been three consecutive months of outflows.”