Bitcoin Bear Market Analysis: Why Defensive Crypto Projects Gain Attention in December

Source: Coindoo Original Title: Bitcoin Has Entered A Bear Market, Say Analysts — Here’s Why — Digitap ($TAP) Stablecoin Spending Thesis Wins As Best Crypto Presale December Original Link: Bitcoin is under pressure again this week. The largest cryptocurrency has now entered a bear market, with the asset staying below the $90,000 level and showing clear signs of weaker demand. When Bitcoin struggles, attention tends to move to early-stage projects that offer structure and utility instead of price-only exposure.

Stablecoin-focused projects emerge at exactly this moment, with spending theses built for risk-off periods. These projects are now seen as defensive options during uncertain conditions.

Why Analysts Say The Bull Run Is Over

U.S. spot Bitcoin ETFs reduced their holdings by around 24,000 BTC during the fourth quarter of 2025. That shift reversed the strong accumulation seen one year earlier. Analysts also point to slower growth among large holders, including ETF and corporate treasury wallets. In earlier cycles, this pattern appeared close to major downturns.

Fidelity’s director of global macro noted that while bullish on Bitcoin long-term, the asset is following its historical 4-year cycle. Price action adds more weight to the argument. Bitcoin fell below its 365-day moving average, a level that historically separated bull and bear markets. Demand growth also slipped below its long-term trend in early October. Bitcoin now trades near $89,000, down roughly 30% from its peak above $126,000.

What The Bitcoin Chart Suggests Next

The Bitcoin chart shows a clear change in direction. Lower highs and lower lows formed after the October peak. Heavy selling during November came with rising volume, a classic sign of distribution rather than healthy correction. Recent price action near $89,000 looks like a short relief bounce instead of a full recovery.

This kind of chart often sends a signal. Risk becomes harder to manage. Upside feels limited. Volatility punishes late entries. As a result, many market participants look at presales. Presales offer fixed entry prices and clear timelines. They also remove daily chart stress.

Instead of chasing short-term moves, capital often seeks asymmetric setups. That includes early-stage tokens linked to real products. Projects with working utilities fit this pattern well, which supports their growing reputation as altcoins to buy during market pullbacks.

Projects Built For Bear Markets

Projects that align closely with current conditions focus on spending and settlement rather than price speculation. Omni-banking apps and stablecoin integration play central roles, helping users avoid sudden price swings when the market turns red.

This matters during a Bitcoin bear market. Many holders prefer to lock value and keep flexibility. Such platforms allow crypto conversion into spendable balance through one unified system. That setup supports freelancers, merchants, and everyday users who need stability. Live apps also separate these projects from many presales that still rely on future promises.

In a risk-off climate, real usage becomes a key filter. Projects with working products often stand out as safer options to consider.

Token Economics in Bear Markets

Tokens designed with fixed supply and deflationary mechanisms add another layer to this thesis. Fixed supply removes dilution risk. If platform profits are allocated to buybacks and burns, that design reduces circulating supply over time and links the token directly to real platform activity. This matters in a bear market, where inflationary tokens often struggle to hold value.

Presales showing steady demand and meaningful traction represent a different risk profile. When funding crosses several million dollars and token sales exceed 100+ million units, these metrics stand out in a market where many presales fail to reach meaningful traction.