BlockBeats News, September 22nd, according to Cointelegraph’s report, last week’s Fed rate cut, which was once seen as a major catalyst for Bitcoin’s surge, did not cause the market to rally, implying that the Bitcoin bull market cycle may be coming to an end.
Alphractal founder Joao Wedson wrote in a post on Monday that “Bitcoin has shown signs of exhaustion in the cycle, but few have noticed.” Signals on multiple chains indicate that Bitcoin’s rebound may have lost momentum. Bitcoin has shown a decrease in the spent output profit ratio (SOPR, an indicator measuring the overall profitability of spent Bitcoin transactions on the blockchain), increasing the likelihood of a deeper pullback. The Sharpe ratio is below the 2024 level, implying reduced risk-reward and profit potential.
Wedson added: “This will not attract a large number of institutional investors as most people think. Even if Bitcoin reaches a new high, profitability will remain low, and the real focus will shift to altcoins.”
