Reduced Likelihood of Bitcoin Returning to Bear Market Cycle as UTXO Loss Ratio Declines

On September 17, CryptoQuant analyst Crypto Dan stated that the likelihood of the Bitcoin market returning to a bear market cycle is decreasing. Data shows that the proportion of UTXOs in a loss state has significantly declined recently, a change that may drive the market from a bear phase to a bull cycle. Historical cycles indicate that a decline in UTXO loss ratios of this magnitude is not a short-term rebound signal, but rather a manifestation of enhanced market momentum, potentially leading to the end of the bear phase and the onset of a new upward cycle. Although recent interest rate hikes and the stalled progress of the CLARITY Act may still affect market sentiment, these factors may struggle to fully reverse the ongoing structural changes on-chain.

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