BTC UTXO Loss Data Similar to 2020 Bull Market Cycle

An analysis of the current situation in the cryptocurrency segment shows that the percentage of unused transaction outputs (UTXO) of Bitcoin (BTC) that are in the red is similar to the values ​​of the global correction period of 2020. In his post, an analyst from CryptoQuant under the pseudonym Crypto Dan provided data confirming the similarity and indicated possible developments. The expert is confident that the market remains bullish.

The chart presented in the analysis demonstrates several key points. From 2016 to 2024, significant fluctuations in the value of BTC can be observed, accompanied by changes in the percentage of UTXOs in the loss. Significant corrections occurred in early 2020, which coincides with the onset of the COVID-19 pandemic and the subsequent introduction of the Federal Reserve’s “unlimited quantitative easing policy.”

The period of 2020 was marked by a major decline, but the crypto market soon recovered thanks to a strong influx of liquidity. In 2024, it seems difficult to repeat such measures. However, the segment is expected to receive sufficient support given the long period of correction and the possibility of a transition to easing of the Fed policy in September of this year.

The expert noted: major corrections have recently occurred. The market experienced significant fluctuations in late 2023 and early 2024. However, despite the difficulties, Crypto Dan does not agree with the onset of a bear market. The expert pointed out possible further fluctuations.

“Particular attention should be paid to periods when the percentage of UTXO in loss reached its peaks. Thus, in 2018, this indicator increased significantly, coinciding with the end of the 3rd bull market. A similar situation was observed at the beginning of 2020, when the percentage of UTXO in loss increased sharply, and then a strong jump followed BTC value “up,” the analyst concluded.