Bitcoin on-chain data flashes bottom signal as whales accumulate

A strong on-chain bottom signal has emerged for Bitcoin as its Sharpe ratio, a measure of risk-adjusted returns, has reached a level that historically marked bear market bottoms, CoinDesk reported. According to CryptoQuant data, the Bitcoin Sharpe ratio fell to -20 on June 11, a figure consistent with the cycle bottoms of 2015, 2018–2019, and 2022–2023. However, this indicator has historically been followed by a consolidation period of at least three to five months rather than an immediate rebound, suggesting the market may be entering a bottom formation phase. In a related trend, accumulator wallets, which exhibit a strong long-term holding pattern, have purchased approximately 125,000 BTC so far in June. Meanwhile, the amount of Bitcoin held on exchanges has decreased by about 80,000 BTC since February to 2.71 million. The next key market catalyst is expected to be the Federal Open Market Committee's (FOMC) interest rate decision and inflation commentary, led by new Fed Chairman Kevin Warsh.