Bitcoin (BTC) bull market remains intact amid temporary slowdown: CQ

Crypto assets declined as 2024 drew to a close. Bitcoin’s post-election surge to over $100,000 had lost momentum. Entering 2025, the asset touched $97,000, but soon pulled back slightly.

However, CryptoQuant’s latest analysis indicates that BTC is still in the midst of a bull market. The current phase has been identified as a cooling period and not the end of the cycle.

Momentary deceleration

After the price of Bitcoin broke above $108,000, a correction followed, raising concerns about the possibility of a prolonged stagnation like the previous six-month retracement. Despite this, the chain’s key data suggested a reassuring view of the market’s health.

In its report, CryptoQuant’s Adjusted SOPR (Profit to Spent Production Ratio), which removes short-term noise by excluding transactions of less than one hour and uses a 7-day simple moving average (SMA), is remains above 1, but has a downward trend. This suggests diminishing returns for participants, but aligns with historical patterns, where SOPR falling below 1 often triggers investment in bull markets.

Similarly, the Miner Position Index (MPI) is also showing a downward trend, with no signs of massive Bitcoin transfers to exchanges. This trend is indicative of the fact that miners, especially large companies, are holding on to their Bitcoin assets, although periodic sales are expected for operating expenses.

Other metrics, such as total network fees, reflect reduced activity on the chain. This phase is further validated by declining funding rates, which have historically been precursors to Bitcoin rebounds, especially during periods of negative sentiment.

Therefore, the data collectively points to a temporary cooling period in the ongoing bull market. While reduced chain activity and declining metrics suggest a momentary slowdown, there is no substantial evidence to point to a peak in the cycle.

Selling Old Bitcoin Whales Amid Institutional Buying

According to CryptoQuant CEO Ki Young Ju’s update, “old whales” are currently the sellers in the Bitcoin market. This is evidenced by high trading volume (OTC) and significant foreign exchange deposits. However, he dismissed fears of a market downturn, adding that such sales are unlikely to cause major disruption.

Ju also noted that the buying pressure is mainly coming from US institutions, especially through Coinbase. Despite this institutional interest, he noted that Coinbase’s daily premium is at a multi-year low, meaning momentum has weakened. As such, a recovery of this premium is needed to support the next stage of Bitcoin.

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