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Bitcoin Supply in Loss Hits 44%: Bear Market Ahead?

Bitcoin’s supply in loss jumps to 44%, hinting at a possible bear market as per CryptoQuant data.

  • 44% of Bitcoin supply is currently in loss
  • Indicator often signals bearish momentum
  • CryptoQuant warns of potential market downturn

Bitcoin’s latest on-chain data is raising eyebrows. According to analytics platform CryptoQuant, the Bitcoin supply in loss has surged to 44%. This metric measures the percentage of circulating BTC that is currently held at a loss compared to its purchase price.

Historically, when this figure climbs above 40%, it often correlates with bearish trends or even the start of a new bear market cycle. The 44% mark is particularly significant because it shows a large portion of investors are now in the red—a situation that can shake confidence and fuel further selling.

Why the 44% Loss Matters

A rising supply in loss suggests that many Bitcoin holders bought at higher prices and are now underwater. This can trigger panic selling, especially if prices continue to decline, as investors rush to cut their losses.

CryptoQuant analysts point out that such spikes have preceded major downtrends in the past. While this doesn’t guarantee a market crash, it serves as a red flag. Combined with recent sluggish price action and macroeconomic pressures, Bitcoin may face increased volatility in the near term.

What This Means for Investors

While 44% is high, it’s not yet at the extreme levels seen in past bear markets, where the supply in loss surpassed 50–60%. Still, this metric, along with others like reduced trading volume and increased exchange inflows, should make investors cautious.

Smart traders are watching this data closely. If losses deepen and selling pressure rises, Bitcoin could dip further. However, some see this as a buying opportunity, especially long-term holders who view dips as entry points.

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Disclaimer: The content on CoinoMedia is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency investments carry risks, and readers should conduct their own research before making any decisions. CoinoMedia is not responsible for any losses or actions taken based on the information provided.

Aurelien Sage

Aurelien Sage is a blockchain enthusiast and writer, crafting insightful articles on decentralized technologies, Web3, and the future of finance. His work simplifies complex concepts, empowering readers to navigate the evolving crypto landscape with confidence.

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