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Bitcoin Is Down 50% but Cryptoquant Says the Cycle Top Still Hasn't Happened

Cryptoquant says its 365‑day PnL Index Signal is still moving lower, which the firm interprets as a sign that Bitcoin's price cycle may not have reached its peak yet.

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What happened

Cryptoquant says its 365‑day PnL Index Signal is still moving lower, which the firm interprets as a sign that Bitcoin’s price cycle may not have reached its peak yet.

Confirmed

Global impact / market context

The signal is used by investors to gauge whether the current decline is near its end; if the cycle top is still ahead, traders may keep positions short, affecting Bitcoin’s price trajectory and related assets.

Confirmed

Bitcoin has fallen about 50% from its recent highs, and on‑chain data provider Cryptoquant is tracking its own 365‑day profit‑and‑loss (PnL) index, a metric that looks at long‑term trader performance.

Confirmed

What to watch

  1. If the PnL Index continues to decline, it could indicate that more traders remain in losing positions, potentially delaying a market bottom and extending the downtrend. Analyst inference
  2. A reversal of the index to upward momentum would suggest that traders are starting to profit, which may precede a price rally and attract new buying interest. Analyst inference
  3. Watch for any significant on‑chain activity spikes, such as large address inflows to exchanges, because they often signal upcoming short‑term price moves. Proposed

Affected assets

  • BTC — Bitcoin

Evidence