BEARISH (0.70)CoinTelegraph

Bitcoin Supply in Profit Nears Bear Market Thresholds

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Recent data from CryptoQuant reveals that 8.2 million Bitcoin are currently held at a loss, indicating a significant portion of the circulating supply is underwater. While this figure remains below the peak levels observed during the 2022 bear market, it approaches what analysts consider 'true bear market' territory, suggesting mounting pressure on holders.

The comparison to previous cycles provides context: during the 2022 downturn, losses were more extensive, implying current conditions, while challenging, may not yet reflect the depths of prior capitulation phases. This metric, combined with other on-chain indicators, suggests the market is testing resilience but hasn't fully entered a prolonged bear phase. Monitoring supply profitability will be crucial for gauging potential recovery or further downside.

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