- The Bitcoin Supply in Profit indicator has decreased to 68.85%, entering a transition zone between bullish and bearish markets.
- Since October 2025, Bitcoin has been experiencing a consistent downward trend.
- CryptoQuant analysts warn that if the indicator does not rise above 75-80%, the likelihood of entering a bearish market will increase.
- External factors such as geopolitical instability and rising demand for safe-haven assets are adding pressure on the market.
CryptoQuant: The Crypto Market Approaches a Downturn Phase
In recent developments within the cryptocurrency sector, CryptoQuant has highlighted critical insights regarding Bitcoin’s current market stance. The Bitcoin Supply in Profit indicator, which reflects the percentage of Bitcoin supply that remains profitable, has now declined to 68.85%. This figure places it within a transitional range—between 55% and 80%—suggesting an impending shift from a growth phase towards a potential bear market.
A Sustained Downward Trend Since October 2025
Since October 2025, Bitcoin has been on a steady downward trajectory. CryptoQuant experts emphasize that this decline is not merely a short-term correction. It signals signs of persistent market weakening typically observed in late-cycle phases. The analysts further caution that without an uptick past the 75-80% mark in the Supply in Profit indicator, there is an increasing probability of transitioning into a bearish cycle.
Contributing External Factors
Moreover, external elements such as geopolitical tensions and increased demand for protective assets are exacerbating internal metric weaknesses. These pressures contribute significantly to market dynamics and could influence future trends.
The Importance of Duration Over Percentage
Historically, it is not just about whether the Supply in Profit falls below 80%, but how long it stays within this range that plays a pivotal role. If it lingers around the current level without improvement, we might see further bearish developments. Conversely, reclaiming levels above 75-80% might indicate sustained bullish momentum.
A Time for Conservative Positioning and Risk Management
During this initial transitional phase away from the bullish cycle, adopting conservative positioning and disciplined risk management becomes increasingly crucial. Instead of making definitive predictions regarding market direction at this juncture, understanding these shifts can help navigate through potential changes effectively.
The broader crypto landscape continues to evolve with these developments playing out amidst declining buyer activity as noted by previous analyses. Staying informed about these trends and adapting strategies accordingly will be key for investors navigating today’s volatile crypto markets.
