Bitcoin Faces Prolonged Downtrend Through 2027, Analyst Warns

Bitcoin’s market cap has dropped to roughly $1.46 trillion, pushing it beneath a number of main expertise firms and commodities in world asset rankings.

Gold Holds Top Spot As BTC Slides

Gold stays the world’s most beneficial asset at almost $31 trillion, with Nvidia, Apple, Alphabet, Microsoft, Amazon, TSMC, Broadcom, Saudi Aramco, Tesla, and Meta Platforms all ranked above Bitcoin.

The drop displays mounting stress on the cryptocurrency from a number of fronts — together with rising inflation, geopolitical battle, and weakening investor sentiment.

Ki Young Ju, chief government of crypto analytics agency CryptoQuant, now says the bear market might stretch into early 2027. His evaluation relies on an on-chain profitability mannequin that tracks how lengthy investor losses usually drag on as soon as profit-taking begins to unwind.

According to Ju, the decline in investor earnings began in October 2025. He argues the development has adopted a roughly 18-month sample seen in earlier downturns, pointing to related cycles in 2014, 2018, and 2022.

Bear Market Clock Started In October 2025

The CryptoQuant PnL Index Signal — a chart that measures investor profitability utilizing 365-day transferring averages — exhibits the indicator rolling over after hitting a peak final yr.

Ju posted the chart on X, noting {that a} restoration will solely be confirmed when unrealized earnings rise whereas realized earnings fall. That shift has not occurred but, he stated.

Bitcoin was buying and selling close to $73,289 on the time of the report, down barely over a 24-hour interval. Data from CoinGlass exhibits complete open curiosity within the derivatives market fell to round $55 billion, whereas liquidations over the identical interval hit near $224 million.

Long Traders Take The Brunt Of The Damage

Long positions bore the majority of these losses. Over $30 million in bullish bets have been worn out in 24 hours, in comparison with round $17 million briefly liquidations. Despite these figures, the long-short ratio on main exchanges together with Binance and OKX nonetheless leans bullish.

Broader macroeconomic circumstances are including to the stress. US PCE inflation climbed to three.8% year-over-year in April, and Fed fee hike odds have risen sharply in response.

Reports point out that tensions between the US and Iran have additionally rattled world markets, with danger sentiment throughout crypto persevering with to weaken.

Featured picture from Pexels, chart from TradingView

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