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      CryptoQuant Analysis Indicates Bear Market Cycle Unlikely Despite Economic Challenges

      A recent analysis by CryptoQuant, published on September 17, indicates that the current market dynamics for Bitcoin suggest a return to bear market conditions is unlikely. The report highlights a significant decrease in the percentage of Bitcoin unspent transaction outputs (UTXOs) that are currently at a loss, a trend that historically signals the end of bearish phases in the cryptocurrency market.

      Despite macroeconomic pressures, including a recent interest rate hike by the Federal Reserve—the first since 2023—and the US Senate's rejection of the CLARITY Act, CryptoQuant asserts that structural improvements within the Bitcoin network are more influential on its long-term trajectory. The analysis emphasizes that a declining percentage of UTXOs in loss typically precedes bullish market phases, indicating a healthier network.

      CryptoQuant's evolving perspective marks a shift from its previous bearish stance noted in late 2025, as the firm now observes improving on-chain metrics. While the current economic landscape remains challenging, the report suggests that the foundational distress among Bitcoin holders is diminishing, potentially setting the stage for a more favorable market environment in the future. Investors are advised to consider these on-chain signals as they navigate the complexities of the market.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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