Bitcoin Supply Metrics Nearing Historic Bear Market Levels

Bitcoin's supply metrics are raising concerns among investors, as they approach historic bear market levels. According to on-chain data from CryptoQuant, 8.2 million BTC are currently in loss, while 11.2 million remain in profit. This trend is being seen as a sign that the market is approaching a turning point.

Analysts like Darkfost believe that this could indicate undervaluation in the market, suggesting that Bitcoin may be due for a price increase. However, not all experts agree, with Bitrue research lead Andri Fauzan Adziima warning that the data points to rising market stress rather than a true bottom.

Adziima noted that real capitulation bottoms have looked far worse, with more than half of the Bitcoin supply in loss during past bear markets. He also pointed out that other key indicators, such as NUPL and MVRV, had dropped to far more extreme levels before reaching a true bottom.