Bitcoin Price Drops 21.7% from All-Time High Amid Cautious Market

Bitcoin is currently down 21.7% from its all-time high of over $109,000 in January. However, it has rebounded 6.8% in the past week, trading above $85,000 and approaching the psychological mark of $90,000.

Current Market Cycle Insights

CryptoQuant analyst Crypto Dan notes a subdued market cycle compared to previous bull runs.
The percentage of Bitcoin held short-term (1 week to 1 month) is lower, indicating reduced interest from new entrants.
Macro conditions include tight liquidity and high interest rates, slowing capital inflows.
Market leadership has shifted from retail traders to institutional investors due to Bitcoin ETF approvals.
Price movements are now more measured and cautious, lacking traditional euphoria.

Patience is crucial; understanding the slower structure can yield better outcomes.

On-Chain Metrics Indicate Strength

Over 70% of Bitcoin's supply is in profit, historically linked to price stability.
This metric tracks BTC with a cost basis below the current market price.
An elevated supply-in-profit ratio may support further upward momentum.
The next target is to push this metric toward 80%, which could reinforce bullish trends.

If macro conditions improve and ETF inflows continue, Bitcoin may gain strength despite low speculative enthusiasm.