46% of Bitcoin Investors Are Losing Money! According to CryptoQuant, the Bottom Is Not In Yet: What Will Signal a Market Bottom?

The leading cryptocurrency, Bitcoin ($BTC), has fallen below $70,000 following a downward trend over recent weeks and yesterday's sell-off by institutional investors.

As BTC dropped below $70,000 for the first time since April, the percentage of investors holding their coins at a loss also increased.

CryptoQuant analyst Julio Moreno stated that the percentage of Bitcoin supply currently in loss has reached 40.6%. In other words, 40.6% of all circulating BTC is being held at a loss.

However, according to Moreno, Bitcoin has not yet reached its market bottom.

Referring to CryptoQuant data, Moreno noted that the current 40.6% figure is not sufficient to confirm that a bottom has been established.

"Based on the historical behavior of this metric, the current level is not enough to conclude that the price has reached its bottom."

Reviewing data since 2015, Moreno pointed out that major market bottoms have typically formed when this indicator reached the upper boundary of its long-term downward trend line.

He added that while previous bear markets often required more than 60% of Bitcoin's supply to be underwater before a bottom formed, that threshold has gradually decreased in subsequent market cycles.

Although the current 40.6% level reflects considerable market stress, it has not yet reached the levels that historically marked the strongest buying opportunities.

Moreno concluded that if Bitcoin continues to decline or remains at current levels for an extended period, the percentage of supply held at a loss could retest this important trend line, potentially bringing the market closer to a historical bottom signal.

See also: "Arthur Hayes believes Hyperliquid is pulling capital away from Solana"

#Bitcoin (BTC) #Forecast

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