The Bitcoin market is showing signs of shifting, with data indicating that the supply of Bitcoin currently in profit is approaching levels typically seen in a 'true bear market.' According to CryptoQuant, approximately 8.2 million Bitcoin are presently at a loss. While this number is still below the peak losses witnessed during the 2022 bear market, the trend suggests increasing pressure on holders.
Adding to this potential bearish sentiment, Bitcoin heads into the holiday weekend with significant trading channels effectively offline. Both the CME (Chicago Mercantile Exchange) futures market and Bitcoin ETFs have seen their flows halt due to the Good Friday holiday. This temporary shutdown removes a crucial source of institutional demand, a factor that has been instrumental in supporting Bitcoin's price action in recent times.
With ETF and CME flows ceasing, the market is left more exposed. Large holders are reportedly continuing to distribute their assets, while spot demand appears to be weakening. This combination of factors – a rising number of Bitcoin holders at a loss and a reduction in key demand drivers – could create a more challenging environment for Bitcoin in the short term.
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