Bitcoin Supply Metrics Approach Historic Bear Market Levels

News Flash 2026-04-04 15:46

Bitcoin's supply metrics are nearing levels seen in past bear markets, with 11.2 million BTC currently in profit and 8.2 million in loss, according to CryptoQuant. This is below the 2020 cycle low of 10.6 million BTC in loss, indicating potential market stress. Analysts suggest these metrics could signal a bear market phase, with Bitcoin's price having fallen about 52% from its all-time high. Experts are divided on whether Bitcoin is undervalued. While some see signs of a structural bottom near $55,000, others, like Bitrue's Andri Fauzan Adziima, argue that the market has not yet reached a true bottom. The current conditions resemble the early to middle stages of a bear market, with potential for further downside or prolonged sideways trading. Additionally, Bitcoin's price struggles amid a strong US dollar and weak Chinese yuan, as noted by Bitcoin author Timothy Peterson. He suggests that Bitcoin may only see relief when US interest rates fall, potentially in the latter half of 2026.

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This content is for informational purposes only and does not constitute investment advice.

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