Bitcoin Bear Market Losses May Stay Limited as ETF Demand Grows

Bitcoin may avoid the deep losses seen in previous bear markets as growing exchange-traded fund (ETF) inflows and rising corporate buying continue to support demand. Although Bitcoin (BTC) remains under pressure after falling from its all-time high near $126,000, some analysts believe this cycle is showing clear differences from earlier downturns.

Bitcoin is currently trading around 36% below its peak, a much smaller decline compared to past cycles. During the 2013–2015 bear market, Bitcoin lost nearly 85% of its value. The 2017–2018 and 2021–2022 downturns also recorded declines of around 77% before reaching market bottoms.

Bitcoin ETF Inflows and Corporate Buying Support Demand

According to Bitcoin Bond Company Chief Executive Officer Pierre Rochard, the current market has “materially decoupled” from previous cycles because new sources of demand now exist. He pointed to US-listed spot Bitcoin ETFs, which have recorded more than $59 billion in net inflows since launch, including around $4.5 billion since March.

Corporate Bitcoin accumulation is also increasing. Business intelligence firm Strategy expanded its holdings to 818,869 BTC, up from 640,031 BTC in October 2025, adding nearly 179,000 Bitcoin. The company’s average purchase price stands near $75,543.

Analysts See Different Conditions From 2022 Market Crash

Current conditions no longer resemble the 2022 bear market. He highlighted factors such as fresh Nasdaq highs, discussions around a strategic Bitcoin reserve, the upcoming CLARITY Act vote, and leadership changes at the Federal Reserve.

Meanwhile, cryptoquant data suggests retail investor activity is slowly returning. Bitcoin transfer volume from smaller wallets improved in May after falling sharply in April, signaling renewed interest from smaller market participants.