As Bitcoin continues its decline, discussions about a potential bottom are intensifying. Latest data indicates that the proportion of Bitcoin supply operating at a loss has risen to over 40%, approaching levels often considered bottoming areas in past cycles.
Price drops below $70,000
Bitcoin briefly fell below the $70,000 mark, with the latest price at approximately $68,834, a 4.15% drop in the past 24 hours. The article states that this trend continues to squeeze short-term speculative funds, turning many holders' paper profits into losses.
The proportion of loss-making supply is rising
The so-called "supply deficit" refers to the percentage of Bitcoin held at a price lower than the cost of purchase. As this percentage continues to rise, more and more investors, including some large holders, are holding positions below their cost basis.
Historical bottom signal reappears
The article cites analysis suggesting that in the past few cycles, when the Bitcoin supply loss ratio approached 60%, the market tended to be closer to a cyclical low. Current data is converging towards this pattern, therefore the market is closely watching for potential bottoming signals.
