BTC Profit and Loss Index May Signal Bear Market, But Bitcoin Whale Holdings Increase

CryptoQuant's data shows that the BTC Profit and Loss Index is currently hovering around its 365-day moving average, which usually signals that a major correction or the beginning of a sustained bear market may be imminent. Additionally, CryptoQuant's Bitcoin Bull/Bear Market Cycle Indicator is approaching the key levels that signal an entry into a bear market. the lack of growth in USDT's market capitalization also suggests that a rebound may be difficult to achieve.

However, the data likewise shows that bitcoin whales have been increasing their holdings during the recent downtrend, with mega-whale holders increasing their holdings by 6.3% over the past month, the fastest pace since April 2023.The data also shows that bitcoin whales have been increasing their holdings during the recent downtrend, with mega-whale holders increasing their holdings by 6.3% over the past month. A major sell-off by the German government also appears to be coming to an end. A number of other positive factors, such as the U.S.-approved spot Ether ETF and the continued growth of U.S. stock indices, point to continued gains in 2024, despite short-term signs of weakness.