Based on HashNews, Bitfinex Alpha's latest report suggests the crypto market is nearing a local bottom in terms of time. Although it remains to be seen if prices have hit a floor, signs of extreme deleveraging, short-term holder selling, and diminishing seller strength indicate the market is entering a stabilization phase. On-chain data shows the adjusted spent output profit ratio has dropped below 1 for the third time since early 2024, aligning with performance during previous cycle lows in August 2024 and April 2025. The adjusted realized loss has also risen to $403.4 million per day, higher than previous lows, suggesting selling is nearing an end. Derivatives data shows Bitcoin futures open interest (OI) has dropped to $59.17 billion, far below the $94.12 billion peak, indicating orderly deleveraging. The decline in OI alongside rising spot prices suggests short-covering is driving the market, reinforcing the view that the market is shifting toward a more stable consolidation phase. Institutional adoption has also deepened, with BlackRock's latest filing showing a 14% increase in its IBIT holdings to 2.39 million shares, signaling growing structural support for Bitcoin ETFs.
HashNews: Crypto Market Near Bottoming, Q4 Expected to Form Stable Recovery Foundation
KuCoinFlashShare
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.