Bitcoin's Loss-Making UTXO Plunge Suggests End to Bear Market
The prolonged bear market for Bitcoin may be nearing its end, according to on-chain analysts who point to a decline in loss-making UTXOs as a potential sign of a shift towards a bullish cycle.
Crypto Dan, an analyst, noted that the falling proportion of UTXOs trading at a loss has historically marked the end of bear phases rather than temporary rebounds. He pointed to previous market cycles where declines of this scale have shown enough momentum to bring bearish phases to an end and transition the market into a bullish cycle.
The current price action, with Bitcoin trading above $76,000, is also seen as resilient in the face of macro headwinds such as a Federal Reserve rate hike and the stalled CLARITY Act in the Senate. Analysts argue that these events failed to push the cryptocurrency meaningfully lower, suggesting that the market may be transitioning.
Trading volume has cooled alongside the price action, but on-chain indicators suggest that the market may be shifting towards a new bull cycle. The compression between $71,300 and $79,800 remains unresolved, and until this range breaks, the question of whether a new bull cycle has truly begun remains open.