Categories: Bitcoin Latest News

Bitcoin Faces Prolonged Downtrend Through 2027, Analyst Warns

Bitcoin’s market cap has dropped to roughly $1.46 trillion, pushing it below several major technology companies and commodities in global asset rankings.

Gold Holds Top Spot As BTC Slides

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

The drop reflects mounting pressure on the cryptocurrency from multiple fronts — including rising inflation, geopolitical conflict, and weakening investor sentiment.

Ki Young Ju, chief executive of crypto analytics firm CryptoQuant, now says the bear market could stretch into early 2027. His assessment is based on an on-chain profitability model that tracks how long investor losses typically drag on once profit-taking begins to unwind.

Once profit-taking cascades, Bitcoin investors’ PnL typically falls for about 18 months.

Since the trend turned in Oct 2025, the bear market could last until early 2027.

The trend only changes when unrealized profits rise and realized profits fall. We’re not there yet. pic.twitter.com/fQyIRLu8vv

— Ki Young Ju (@ki_young_ju) May 29, 2026

According to Ju, the decline in investor profits started in October 2025. He argues the trend has followed a roughly 18-month pattern seen in previous downturns, pointing to similar cycles in 2014, 2018, and 2022.

Bear Market Clock Started In October 2025

The CryptoQuant PnL Index Signal — a chart that measures investor profitability using 365-day moving averages — shows the indicator rolling over after hitting a peak last year.

Ju posted the chart on X, noting that a recovery will only be confirmed when unrealized profits rise while realized profits fall. That shift has not happened yet, he said.

Bitcoin was trading near $73,289 at the time of the report, down slightly over a 24-hour period. Data from CoinGlass shows total open interest in the derivatives market fell to around $55 billion, while liquidations over the same period hit close to $224 million.

Long Traders Take The Brunt Of The Damage

Long positions bore the bulk of those losses. Over $30 million in bullish bets were wiped out in 24 hours, compared to around $17 million in short liquidations. Despite those figures, the long-short ratio on major exchanges including Binance and OKX still leans bullish.

Broader macroeconomic conditions are adding to the pressure. US PCE inflation climbed to 3.8% year-over-year in April, and Fed rate hike odds have risen sharply in response.

Reports indicate that tensions between the US and Iran have also rattled global markets, with risk sentiment across crypto continuing to weaken.

Featured image from Pexels, chart from TradingView

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