Bitcoin (BTC) Has Entered a Bear Market Phase, Disappointing Many Investors

According to Ki Young Ju, CEO of CryptoQuant, Bitcoin (BTC) has entered a bear market phase, which has disappointed many investors.

CryptoQuant CEO Ki Young Ju has claimed that Bitcoin (BTC) has entered a bear market phase, which has disappointed many investors.

His analysis uses the data between Bitcoin’s Realized Cap and its market capitalization. Realized Cap measures Bitcoin’s value based on the transfer price in a wallet, while market capitalization is calculated by multiplying the circulating supply of Bitcoin by its current price.

Check out the full analysis here!

Market Capitalization and Realized Cap Analysis

Ju emphasizes that market capitalization alone cannot track the Bitcoin bull market. When selling pressure is low, small purchases of Bitcoin can boost market capitalization to new highs.

However, when selling pressure is high, large purchases such as Strategy’s $1.92 billion acquisition of 22,048 BTC cannot trigger price increases like previous purchases.

An increase in Realized Cap indicates new capital entering the market, but a declining market capitalization indicates a bearish sentiment. This suggests that despite the injection of fresh capital, the price is not showing a positive response. According to Ju, this marks the end of Bitcoin’s bull market.

Also read: Bitcoin Ready to Surge to $100,000, Whale Buying Resists Trade War Pressure?

Bearish Signals and Bitcoin Price Predictions

Despite Bitcoin’s strong fundamentals and massive acquisitions, on-chain indicators show less encouraging results. Bitcoin price is currently in consolidation with a bearish pennant pattern, indicating the potential for further price declines.

Crypto Sat predicts a short-term drop to $80,000, with the current price sitting at $82,950. Ju himself has a more gloomy prediction, stating that the chances of a short-term rally are very slim.

According to him, it can take up to six months for Bitcoin to break out of a bear market. This suggests that the selling pressure may subside at any time, but historically, a true reversal takes at least six months.

Also read: XRP Records Open Interest Above $3 Billion, Will Price Follow?

Praise from the US Treasury Secretary

Amidst the unfavorable sentiment, the US Secretary of the Treasury, Scott Bessent, praised Bitcoin as a store of value comparable to gold. This shows that despite market volatility, there is still faith in Bitcoin’s long-term value as an investment asset.

This praise may relieve investors who are worried about the current bearish trend. However, investors must understand that the cryptocurrency market is highly volatile and requires a well-thought-out investment strategy.

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This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.