Bitcoin Bottoming Out? Traders Face Bear Market Losses as Miners Capitulate
Cointelegraph4 days ago
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Bitcoin Bottoming Out? Traders Face Bear Market Losses as Miners Capitulate

Bitcoin
CryptoQuant
BearMarket
Traders
Miners

Summary:

  • Bitcoin traders are experiencing unrealized losses of 17%, mirroring the depths of the 2022 bear market.

  • Large-volume investors (whales) are offloading coins, with July alone seeing $1 billion in distributions.

  • Traders are operating with negative margins, indicating potential losses if they sell.

  • Bitcoin miners are in a "capitulation" phase, struggling to stay profitable after the block subsidy halving.

  • CryptoQuant CEO predicts a "boring" next 2-3 months for crypto markets, advising investors to remain long-term bullish but avoid excessive risk.

Bitcoin Traders Face Bear Market Losses: A Sign of the Bottom?

Onchain analytics platform CryptoQuant paints a grim picture for Bitcoin (BTC) traders, highlighting similarities to the 2022 bear market. The platform's latest Weekly Report reveals that Bitcoin traders are experiencing unrealized losses of 17%, mirroring the depths of the previous bear market.

Large-volume investors, known as whales, have been offloading coins, with July alone seeing $1 billion in distributions. This shift from realized profits to losses could signal a potential bottom for Bitcoin's price.

Traders are currently operating with negative margins, meaning they'd incur losses if they sell. These negative margins, the most severe since the FTX collapse in November 2022, are typically associated with market bottoms.

Bitcoin miners are also in a "capitulation" phase, struggling to stay afloat after the April block subsidy halving. Smaller miners are exiting the network, while larger miners have offloaded hundreds of millions of dollars worth of Bitcoin since June.

CryptoQuant CEO Ki Young Ju predicts a "boring" next 2-3 months for crypto markets, advising investors to remain long-term bullish while avoiding excessive risk.

Disclaimer: This article is not intended as investment advice.

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