Reality Check: How Bad Is Bear Market At This Stage?
The current bear market cycle is unique in the way that the negative price sentiment persisted for the longest. After Bitcoin reaching a high of $69,000 last year, the top cryptocurrency has been on a freefall since January 2021. BTC went as low as $17,000 mid-year, which means long term investors suffered a maximum unrealized loss of 75% from the all time high. The net unrealized profit or loss (NUPL) is a key metric to gauge the total effective value of all BTC holdings.
How Bad Is Current Bitcoin Bear Market
The current NUPL is just below zero, which means the Bitcoin network is currently in a state of loss. At this stage, there is scope of maximum BTC accumulation, according to Crypto Quant analysis. However, it seems that there is low BTC accumulation by institutional investors. The current loss status is a lot better compared to the Bitcoin lows of July 2022.
“This is where most significant accumulation occurs until the recovery process. Currently, the network does not reach the value of the maximum loss state.”
BTC has shown negative momentum in recent times. Earlier this week, the cryptocurrency dropped to a three month low of $18,432. As of writing, Bitcoin (BTC) price stands at $18,880, down 0.57% in the last 24 hours, according to price tracking platform CoinMarketCap. Recent price drop also led to shrinking of BTC market share among major cryptocurrencies. Currently, the Bitcoin market capitalization among all cryptocurrencies stands at 41.02%.
Low Confidence Among Institutional Investors
In a latest, cryptocurrency asset management provider Grayscale saw dip in its Bitcoin volumes. This means there is low confidence among institutional investors. Also, Microstrategy, which is the largest institutional investor in Bitcoin, purchased more assets. As per a recent SEC filing, the company purchased $6 million worth of BTC at an average price of around $19,851 per token. With this, Microstrategy along with its subsidiaries, now holds a total of around 130,000 BTC.
- Breaking: $10 Trillion Vanguard Plans to Offer Crypto ETFs to Brokerage Clients
- BlackRock Loads Up on Bitcoin, Files For Premium ETF to Increase BTC Yield
- Best 10 Crypto Cards for 2025
- Expert Projects HYPE Token Upside as Bitwise Files for Hyperliquid ETF With SEC
- Expert Says Crypto ETFs Could Be ‘Death-Knell’ for Treasury Firms MSTR, MTPLF, BMNR, SBET
- CHMPZ Price Prediction:Will This Net-Zero Community Token be the Next Gem?
- Is Ethereum Price Set for a rebound as Whale accumulation Intensifies?
- HYPE Price Prediction As Bitwise Files For Hyperliquid ETF – Is $55 In Sight?
- Shiba Inu Price Eyes Recovery From Demand Zone With Burn Rate Soaring Nearly 400%
- Bitcoin Price: Analyst Predicts Crash to $104K Before Explosive Rally on Fed Cut Pattern
- HBAR Price Elliot Wave Signals an 86% Rebound as Key Risks Remain
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
