Bitcoin loss UTXO share drops sharply, signaling possible bullish turn

Bitcoin is increasingly likely to emerge from a bear market and shift into a bullish cycle as its on-chain structure improves, according to a CoinNess analysis citing CryptoQuant analyst Crypto Dan. Crypto Dan said a recent review of on-chain data showed a sharp decline in the share of unspent transaction outputs, or UTXOs, that are sitting at a loss. Crypto Dan said this suggests more than a short-term technical rebound, pointing instead to improving market fundamentals and fresh upside momentum. Crypto Dan added that near-term macro headwinds, including U.S. Federal Reserve rate hikes and difficulties in a Senate vote on the CLARITY Act, are weighing on market sentiment. Even so, Crypto Dan said those factors are unlikely to fully reverse the large-scale supply absorption and trend shift visible on-chain.