More than half of Bitcoin's circulating supply is currently held at a loss, a condition that historically signals market bottoms and precedes robust price recoveries. According to CoinTelegraph, K33 highlighted that Bitcoin has typically reached its cycle lows within weeks after this threshold is crossed.
K33 further noted that in most previous cycles, once more than half of the supply was underwater, Bitcoin experienced strong returns over the following one-year period. This pattern suggests that current market conditions may be setting the stage for a significant recovery phase.
For Japanese investors closely watching crypto trends amid evolving regulatory landscapes, this data point could provide valuable insight into potential entry opportunities during market downturns.