CryptoQuant: Market performance is weaker than the early stages of the 2022 bear market, BTC may drop to $60,000

CryptoQuant released a report indicating that on-chain data signals show the current market downturn is deepening, performing worse than the early stages of the 2022 bear market, with BTC prices potentially dropping towards $60,000.

The next major support zone for BTC is between $60,000 and $70,000, and there is widespread structural weakness in the crypto market. Institutional demand has sharply reversed, with U.S. spot BTC exchange-traded funds shifting from net buying last year to net selling, while retail participation remains sluggish, with Coinbase premiums consistently negative since mid-October. Liquidity conditions are also tightening.

Additionally, long-term demand growth has significantly collapsed, with annual spot demand for BTC dropping from 1.1 million BTC to 77,000 BTC over the past four months, a decline of 93%.