Derived from TheMarketPeriodical, Bitcoin's price decline has intensified as the flagship asset's cost-basis has fallen below the 0.75 quantile, a level historically associated with bear market conditions. On-chain data from Glassnode shows that Bitcoin is now trading below the average price at which 75% of its supply was acquired, raising concerns about a potential bear market. Analysts note that the Short-term Holders (STH) Profit/Loss ratio has dropped to levels last seen during the 2022 FTX collapse, with STHs selling coins at a loss. The STH Spent Output Profit Ratio (SOPR) is now at 0.97, indicating extreme capitulation. Additionally, the STH Market Value to Realized Value (MVRV) has dropped below 1.0, with most recent buyers underwater. Bitcoin has fallen 18% in the past month, wiping out all of its gains for the year. Long-term holders (LTH) have moved over 800,000 BTC in the past 30 days, and demand has contracted as ETFs and treasury companies have stopped buying. Despite the decline, some analysts suggest a market bottom may be near based on historical patterns in metrics like Net Taker Volume and Stablecoin Supply Ratio.
Bitcoin USD Falls Below 0.75 Cost-Basis Quantile as Bear Market Signals Intensify
TheMarketPeriodicalShare
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