CryptoQuant CEO Predicts Bearish Outlook for Bitcoin, Signals Market Peak
The CEO of a well-known analytics company has recently expressed a more pessimistic outlook on Bitcoin, indicating that the cryptocurrency has reached a significant peak in its current market cycle.
Ki Young Ju, the head of CryptoQuant, shared cites on-chain data that suggests Bitcoin is unlikely to see new highs for at least the next six months. According to Ju, the company’s Profit and Loss Index Cyclical Signals, a tool that evaluates several on-chain metrics to identify market trends, has recently flashed a warning that the bullish phase for Bitcoin could be coming to an end.
Ju believes that Bitcoin’s current market cycle is over, predicting six to twelve months of either bearish movement or sideways trading. He points out that Bitcoin’s 365-day moving average is showing signs of a downturn, which further signals the possibility of a bearish shift.
Ju emphasized that multiple on-chain metrics are aligning to suggest a shift toward a bear market. He attributes this to declining liquidity, with new whales selling Bitcoin at lower prices, which is contributing to the bearish trend.
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The analytics executive further explained that tools like the Market Value to Realized Value (MVRV), Spent Output Profit Ratio (SOPR), and Net Unrealized Profit/Loss (NUPL) are pointing toward a major inflection point. By applying Principal Component Analysis (PCA) to these indicators, Ju noted that the trend of the one-year moving average is beginning to change, signaling the possible start of a bear market.
MVRV measures whether Bitcoin is undervalued or overvalued by comparing its current price to the average price at which coins were last moved. SOPR tracks whether holders are selling at a profit or a loss, which helps identify potential price reversals. Meanwhile, NUPL gauges the overall profit or loss status of Bitcoin investors to assess market sentiment.
Ju concluded by highlighting the lack of fresh liquidity and the inability of significant trading volumes to push Bitcoin’s price higher. Additionally, ETF inflows have been negative for the past three weeks, reinforcing the bearish sentiment.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
