Bitcoin's Bull Market Cycle May Be Nearing Its End, Analysts Suggest

According to BlockBeats, recent developments in the cryptocurrency market suggest that Bitcoin's bull market cycle might be approaching its conclusion. Despite last week's interest rate cut by the Federal Reserve, which was initially seen as a positive factor for Bitcoin's price, the market did not experience an upward trend. This indicates that the bullish phase for Bitcoin could be waning. Joao Wedson, founder of Alphractal, expressed on X that Bitcoin is showing signs of cycle exhaustion, although few have noticed. Various on-chain signals suggest that Bitcoin's rebound may have lost momentum. The Spent Output Profit Ratio (SOPR), an indicator measuring the overall profitability of all spent Bitcoin transactions on the blockchain, has shown a decline in profitability, increasing the likelihood of a deeper correction. Additionally, the Sharpe ratio is below 2024 levels, indicating reduced risk-reward and profit potential. Wedson further noted that this situation might not attract a significant number of institutional investors as many might expect. Even if Bitcoin reaches new highs, profitability is likely to remain low, shifting the real focus towards altcoins.