Bitcoin BCMI Suggests Bear Market Conditions

A CryptoQuant report has found that Bitcoin's Combined Market Index (BCMI) is mirroring the early stages of bear markets seen in 2018 and 2022.

The index, which aggregates valuation metrics such as MVRV, profitability indicators like NUPL, spending behavior via SOPR, and broader sentiment measures into a single composite reading, has fallen to the low 0.2 range from near 0.5 in October.

This pattern diverges from past mid-cycle cooling periods and increasingly mirrors transitions into risk-off environments.

Historical data shows previous cycle bottoms formed when BCMI reached approximately 0.10-0.15, as observed in 2019 and during the 2022-2023 bear phase.