Bitcoin P&L ratio falls to 43-month low

Bitcoin’s realized profit-and-loss ratio has dropped to a 43-month low of -0.35, a level CryptoQuant says has historically marked major market bottoms. The reading is the weakest since December 2022, after the FTX collapse, and comes amid a roughly 50% drawdown from Bitcoin’s October high of $126,080. Despite the severe loss conditions, Bitcoin has rebounded more than 7% from a June 25 low near $58,190 and was cited at about $62,544. Analysts cited in the article argue the market may be nearing exhaustion of leverage and capitulation, which could support a broader recovery. Bitwise’s Matt Hougan said the bottom is “closer than ever” and sees a new bull market potentially starting in the fall, while Swan Bitcoin’s Adam Livingston suggested current prices may still offer attractive long-term value.