Bitcoin Is Getting Closer to the Bottom, But Demand Is Falling: CryptoQuant

Bitcoin's bear market may be approaching its conclusion, according to CryptoQuant analysts, though current demand from both individual and institutional investors remains subdued. The on-chain analytics firm observed that while miner revenue has declined by 47% since its peak, indicating a potential capitulation phase, the number of Bitcoin addresses in profit has also fallen significantly. This suggests that many holders are underwater, a common characteristic of market bottoms. However, CryptoQuant noted that the net position change of long-term holders, a key metric for sustained demand, has turned negative, implying these investors are not actively accumulating. Furthermore, the firm highlighted that exchange net flows, which track the movement of Bitcoin into and out of exchanges, have seen an increase in outflows, but this is primarily driven by miners rather than new investor demand. Despite the lack of robust buying pressure, CryptoQuant's analysis of miner capitulation and the prevalence of underwater holders points to a potential shift in market sentiment, even as immediate demand indicators lag.