From Bear to Bull: Analyst Says Bitcoin UTXO Data Points to a Cycle Shift

Bitcoin’s share of addresses sitting at a loss has dropped sharply, and on-chain analyst Crypto Dan says moves of that size have historically ended bear markets rather than just producing a short bounce.

The call went out following two macro jolts that hit crypto: a Fed rate hike and a stalled Senate vote on the CLARITY Act.

Why the On-Chain Picture Looks Different

Crypto Dan’s argument centers on UTXOs, the individual chunks of $BTC in wallets, and how many currently sit below what their holders paid for them.

That share has fallen by a wide margin, and the analyst pointed to past cycles where drops of a similar size didn’t just produce a brief bounce; they closed out the bear phase entirely.

“Looking at previous market cycles, declines of this scale have represented more than just short-term rebounds,” he wrote. “They have shown enough momentum to bring bearish phases to an end and transition the market into a bullish cycle.”

He flagged the rate hike and the CLARITY Act’s failure as near-term risks, but argued that neither had been enough to undo the shift already underway.

Darkfost’s read on the chain data lines up with that. Bitcoin is holding above $71,300, a cost basis that only counts units actively moving through the market, and Darkfost noted this level got tested twice near the end of the 2023 bear market before the next cycle took off.