Crypto Tensions in Q4 2025 Hint at Bear Market Bottom
Q4 2025 data shows Ethereum dropping 29% despite usage growth, a classic signal of crypto market bottoms.
- Ethereum price fell 29% despite record transaction activity.
- Crypto equities dropped while revenue outpaced other sectors.
- Bitwise suggests market tension may signal a bottom.
Mixed Signals in a Shaky Quarter
Q4 2025 proved to be a paradoxical period for the crypto market. According to Bitwise, the quarter displayed a classic mix of stress and growth—conditions that historically signal the end of a bear market. Ethereum (ETH) dropped by 29%, yet blockchain usage hit all-time highs, showing a stark disconnect between price and on-chain activity.
This divergence, Bitwise notes, is often a sign of a bottom forming in the market. When usage continues to rise while prices fall, it suggests that core fundamentals remain strong even as investor sentiment weakens. For long-term holders, such tension has previously marked turning points toward recovery.
Crypto Stocks vs. Broader Market
The traditional financial markets weren’t any kinder to crypto. Crypto-focused equities sank around 20% during the quarter, yet their revenues grew three times faster than companies in other sectors. This mirrors a familiar pattern seen in previous bear market cycles, where operational performance improves before prices catch up.
Bitwise emphasizes that such divergence is not unusual during transition phases. Investor pessimism tends to lag behind improving fundamentals, offering strategic entry points for those able to look past the short-term pain.
Is the Bottom In?
While it’s too early to call a definitive bottom, the indicators are aligning with historical trends. High activity on Ethereum and strong revenue growth in crypto equities suggest foundational strength. If history repeats, Q4 2025 may be looked back on as a key inflection point before a new bull run.
Investors should watch closely: tension between falling prices and rising usage has marked key turning points in crypto’s past cycles.
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