Analysis: The likelihood of Bitcoin re-entering a bear market cycle has decreased, with a significant drop in the proportion of UTXOs in loss.

BlockBeats news, September 17 — CryptoQuant analyst Crypto Dan stated in a post that the possibility of the Bitcoin market returning to a bear market cycle is decreasing. Data shows that the proportion of UTXOs in a loss state has recently dropped sharply, and this change may drive the market to transition from the bear market phase to a bull market cycle.

Historical cycles show that a decline in the share of loss-making UTXOs of a similar scale is not merely a short-term rebound signal, but indicates strengthening market momentum that may help end the bear market phase and enter a new upward cycle. Short-term factors such as recent rate hikes and the failure of the CLARITY Act to advance may still affect market sentiment, but these factors may find it difficult to fully reverse the on-chain structural changes currently taking place.