Bitcoin Bear Market Deepens, Long-Term Holder Profit Erodes

Long-term Bitcoin (BTC) holders are seeing their profit margins diminish as the market continues its downtrend. Data from CryptoQuant indicates that long-term holders, those less sensitive to price swings, still have an average profit of around 74%, but this is quickly eroding as prices near the long-term holder cost basis of approximately $39,000. Market sentiment remains bearish with Bitcoin experiencing a series of negative monthly closes and a significant volatility spike. The supply of BTC in loss has reached 10 million coins, about 50% of the current circulating supply, suggesting the market may be nearing a bearish extreme often associated with previous cycle bottoms. Crypto analysts are closely monitoring the situation as historically, bear markets have ended with capitulation and a return of liquidity, indicating a potential long-term bullish reversal may require patience and endurance from the investment community.