Bitcoin News: One-Third of Circulating BTC Now Held at a Loss

Bitcoin news shows that 28% of Bitcoin in circulation is now held at a loss. It’s a sign of how the recent market crash has affected Bitcoin holders. Crypto analyst Moreno shared this on X, noting that one-third of Bitcoin holders are now underwater.

The sizable number of BTC holders with unrealized losses follows the decline of the flagship asset from above $110,000 to $99,000.

Bitcoin News: Is This the End of the Bitcoin Bull Market?

Bitcoin has slightly recovered and is now trading at $103,000. However, fears that the bull market has ended are growing. This is the first time since June that the asset has traded below $100,000.

The fears are not unfounded, as the Bitcoin Bull Score is now at zero for the first time since January 2020. Long-term holders are selling, pushing key on-chain indicators like demand growth, MVRV, and ETF flows below trend. This shift marks a notable development in Bitcoin news.

However, the flagship asset is back above its 365-day moving average of $102,000. This is a key technical and psychological support level. Its breaking in 2022 confirmed the start of the bear market. There were concerns that BTC could slip to $72,000 if it failed to reclaim the level.

Bitcoin Next Direction Uncertain

Despite what appears to be a modest recovery, it is too early to determine which direction Bitcoin will take. Moreno noted that fears about the start might be unfounded because unrealized losses at these levels have historically marked local bottoms.

Moreno wrote:

Even the Bull Score at Zero is not a bear market indicator. It can either mark a bottom or a late-cycle distribution before trend reversal. However, Moreno believes that the market reactions will determine whether this marks a bottom or the start of a bear market.

He described this as “a state of delicate equilibrium between fear and patience.” If prices remain low and holders are forced into selling due to impatience, the market might be nearing the end of the bull run.

He wrote:

However, there is also a chance that this market will start a new accumulation phase for Bitcoin. This happens when fear peaks and selling pressure fades.

A solid bottom may then form, marking a key moment in Bitcoin news. The Crypto Fear and Greed Index is currently in the Fear zone.