Bitcoin Supply in Profit Approaches Bear Market Levels

CryptoQuant data indicates that Bitcoin's supply in profit is heading towards 'true bear market' levels, with approximately 11.2 million Bitcoins currently in profit. This figure is getting close to the 9 million BTC recorded during the previous bear market at its lowest point.

However, some analysts argue that this trend does not necessarily signal undervaluation. Andri Fauzan Adziima, research lead at Bitrue exchange, claims that increasing market stress rather than undervaluation is being signaled by the data.

Data also shows that Bitcoin has declined by about 52% from its all-time high this cycle, which is less severe compared to previous bear markets that saw 77-84% drawdowns. The strong US dollar is hampering recovery, and some experts predict a potential structural bottom near $55,000 before further decline or consolidation.