Crypto Market Stuck in Bear Cycle Amid Miners' Capacity Shift

The crypto market continues to struggle under bearish pressure, with many experts claiming it's nearing its end. However, Santiment believes this pessimism may be an attractive opportunity for long-term buyers.

According to DeFi Report, approximately 85% of the current bear cycle has already passed, and global macroeconomic events will likely determine how the market develops from here. This is a critical phase, as it's estimated that only 15% of the cycle remains.

The inclusion of Bitcoin treasuries in MSCI indices may also be impacted by a new methodology. Strategy and Metaplanet are under review for holding non-operating assets, with no decision yet made. If excluded, JPMorgan estimates an outflow of $2.8 billion from Strategy's securities.

Public Bitcoin miners have reduced their hash rate by 21% over the past three quarters due to redeploying capacity to AI infrastructure. This is attributed to a weak mining economy and competition for capital and electricity from the AI sector.