Bitcoin Risks Losing 80% of Its Value If Oldest Crypto Market Theory Comes True

Bitcoin's Alarming Profit-Loss Signal Foreshadows Potential 80% Crash Cryptocurrency investors are on high alert as Bitcoin, the digital gold standard, faces a concerning technical signal that has historically preceded major sell-offs. According to CryptoQuant's analysis, the 365-day moving average of Bitcoin's Profit-and-Loss (PnL) Index has reached levels similar to those seen prior to the three largest crashes in the cryptocurrency's history - 2013, 2017, and 2021. Each time this ominous pattern has emerged, Bitcoin has subsequently plummeted by a staggering 75-80% in the following year. With the leading crypto asset trading near the $110,000 mark, this foreboding technical alignment suggests that Bitcoin could be poised to lose over 80% of its value if the trend continues. Seasoned cryptocurrency traders and analysts are closely monitoring this situation, as the potential for a major downturn could have far-reaching implications for the broader digital asset market. The PnL Index, which tracks the net profit or loss of Bitcoin holders, serves as a crucial long-term indicator of market sentiment and investor behavior. As the crypto space matures, understanding these historical patterns and technical markers becomes increasingly vital for investors seeking to navigate the volatile and unpredictable nature of the digital asset landscape. While the future remains uncertain, the ominous warning signs surrounding Bitcoin's PnL Index signal a potential storm on the horizon that could shake the foundations of the cryptocurrency market.