Cryptoquant's analysis of a rising bitcoin supply in loss percentage, currently between 15% and 20%, historically signals an early structural shift into a prolonged bear market, affecting both short-term and potentially long-term holders.
The analysis is based on on-chain metrics from cryptoquant, a reputable analytics firm, referencing historical market cycles (2014, 2018, 2022) where similar signals preceded bear markets.
The increasing 'supply in loss' metric indicates unrealized losses are spreading, a key early bear market signal. this suggests the current dip is not merely a correction but potentially the start of a distribution phase with further downside.
The signal points to a 'structural shift' and 'prolonged downside,' indicating that the potential price dip could 'linger for a while' rather than being a short-term correction, marking the early phase of a bear market.
Cover image via U.Today Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available. Read U.TODAY on Google News Bitcoin (BTC) has flashed bearish market signals as the current dip suggests early structural shift into prolonged downside. CryptoQuant’s update highlights a rising Bitcoin supply in loss percentage, which stands between 15% and 20%. Advertisement Bitcoin supply in loss signals structural market shift Notably, this on-chain metric signals early bear markets as unrealized losses spread from short-term to long-term holders. For perspective, "Bitcoin's supply in loss" represents the percentage of all BTC in circulation that is currently worth less than the price it was bought at. The implication of this metric increasing is that more Bitcoin holders will be at a loss and likely to consider selling off their assets to limit further bleeding. Short-term traders will first suffer the impact of the bear market, as these investors likely purchased the asset when Bitcoin had crossed the $85,000 level. If the momentum continues, it could gradually spread to long-term holders, which signals weakening market conviction. In previous market cycles of 2014, 2018 and 2022, Bitcoin's supply in loss started rising first before the price dip commenced. With this increase in on-chain metrics, Bitcoin is already displaying warning signs of further downside. Early Bear Market Signal “Historically, this shift has marked the early phase of bear markets, when losses begin to spread beyond short-term holders and gradually reach longer-term participants.” – By @Woo_Minkyu Link ⤵️ https://t.co/Y1HIXfUmLw pic.twitter.com/u9daSX9N4o — CryptoQuant.com (@cryptoquant_com) January 28, 2026 With momentum weakening, Bitcoin’s losses are likely to spread, and the market could be entering a distribution phase. That is, the price dip is not a temporary correction and might linger for a while. As of press time, Bitcoin is changing hands at $89,688.08, which represents a 2.2% increase in the last 24 hours. The coin witnessed a sharp increase as the broader market registered a recovery within this period. Despite this increase, Bitcoin has continued its weekly loss and has dropped by 0.39%. The asset’s trading volume has, however, increased by 22.16% to $42.65 billion. You Might Also Like Wed, 01/28/2026 - 15:18 Bitcoin Retail Demand Collapses Despite Crypto Market Recovery By Caroline Amosun Robert Kiyosaki warns against panic-selling If the Bitcoin supply in loss percentage continues to rise, it could trigger a massive sell-off on the market. However, going by a recent comment by renowned author and entrepreneur, Robert Kiyosaki, this might be a mistake. According to his recent comments, Kiyosaki — who sold some of his assets — regretted the move , calling it a "big mistake." The entrepreneur who sold BTC in November 2025 is looking at buying more Bitcoin, Ethereum, gold and silver. Meanwhile, the performance of Bitcoin has continued to be of concern as a close in the red would mark its fourth consecutive losing streak. Bitcoin has not suffered such repetitive losses since 2018 , and this fact adds to concerns about price outlook. #Bitcoin