CryptoQuant Farsi

A key characteristic of the bear markets is the shrinking of profitability across the network. To trace this aspect of the market, we can utilize different on-chain metrics such as aSOPR. This metric Ad is a ratio of spent outputs (lived more than an hour) in profit at the time of the window. - Values over '1' indicate more investors are selling at a profit. - Values below '1' indicate more investors are selling at a loss. Using 30-DMA, an indicator can be developed to trace the pivotal point of a bear market full transition to the bull market.  

The recent jump in Bitcoin's price to $18,200 has led more than 13% of Bitcoin's circulating supply to be in profit. Also, given the sharp spike in this metric, it is safe to claim a considerable number of coins were bought between $16.5K and $18.2K.  

During the previous two bear markets’ maximum pain point, investors were shouldering a loss equal to +75% of the market cap. Presently, the magnitude of unrealized loss has increased to 65% of market cap. This level of financial pain was caused by the market reaction to the FTX collapse, which underlined how significance of this event.  

Miner reserve have been in decline for the longest time since 2019. The reserve of these major market participants have been steadily decreasing over the previous 115 days, falling by around 12,400 coins. Currently, their reserves have roughly reached the level seen at the beginning of 2022.