🎭 The crypto market is dominated by negative sentiments, said CEO of CryptoQuant Ki Yong Joo. The expert emphasized that without inflows of macroeconomic liquidity, the industry risks entering a phase of prolonged decline.
According to him, most on-chain Bitcoin indicators point to a bearish scenario. The metrics signal problems with the growth of demand for Bitcoin and a decrease in the profit margin of on-chain traders.
The overall market structure increasingly resembles the first quarter of 2022, which preceded a deep correction. This was stated by analysts at Glassnode.
The similarity is confirmed by the cost quantile model, which tracks the entry price of the largest clusters of coins. Since mid-November, the price of Bitcoin has fallen below the 0.75 quantile (around $96,100), resulting in approximately a quarter of the total supply of cryptocurrency being in a loss zone.
Such a situation has created an extremely unstable equilibrium. On one hand, there is the risk of capitulation by large holders, and on the other, the chance of exhausting sellers and forming a bottom.
