Bitcoin’s supply metrics are nearing bear market territory, with approximately 11.2 million BTC currently in profit, according to CryptoQuant analyst “Darkfost.” This figure is approaching the previous bear market’s low of 9 million BTC in profit. Meanwhile, about 8.2 million BTC are at a loss, the highest since late 2022, suggesting growing market stress rather than immediate undervaluation, as noted by Bitrue’s research lead, Andri Fauzan Adziima.
The current Bitcoin performance reflects a decline of about 52% from its all-time high, which is less severe than previous bear markets that experienced drawdowns of 77% to 84%. However, analysts indicate that further downside or consolidation may be on the horizon, with potential structural bottoms forming near $55,000.
For market professionals, the key takeaway is that while Bitcoin’s metrics suggest a nearing bottom, the prevailing strength of the dollar and global liquidity constraints could delay any significant recovery, keeping investors cautious in the near term.
Source: cointelegraph.com