- Crypto market bottom signals improve as stablecoin supply rises 3%
- Bitcoin long-term holders increase while short-term supply drops 37%
- Sentiment shifts as 75% institutions see Bitcoin as undervalued
The crypto market bottom narrative is gaining attention as new Coinbase and Glassnode data shows improving sentiment across Bitcoin and Ethereum. While macro uncertainty still weighs on short-term moves, rising stablecoin supply, increased long-term holdings, and a shift in Bitcoin sentiment from fear to optimism suggest conditions may be forming for early market stabilization and potential recovery.
Crypto Market Bottom Signals Strengthen as Sentiment Improves
A potential crypto market bottom is forming as sentiment improves across major digital assets. According to Coinbase Institutional and Glassnode, multiple indicators now show early stabilization. However, macro uncertainty and geopolitical risks still influence short-term movement.
The crypto market bottom narrative is supported by shifting investor behaviour. Bitcoin sentiment has moved from fear to optimism. At the same time, 75% of institutional investors and 71% of retail investors view Bitcoin as undervalued.
Total crypto market capitalization excluding stablecoins dropped 18% in Q1 2026. Despite this decline, stablecoin supply rose from $308 billion to $318 billion, showing a 3% increase. This suggests capital has not exited the system, supporting the crypto market bottom view.
Crypto Market Bottom Supported by On-Chain Accumulation Trends
The crypto market bottom case is reinforced by on-chain data trends. Bitcoin supply held for less than three months fell by 37% in Q1. This indicates reduced short-term trading activity and lower speculative pressure.
In contrast, long-term Bitcoin holdings increased by 1%, showing stronger conviction among investors. The crypto market bottom structure is often linked with this shift from short-term to long-term holding behaviour.
Ethereum also reflects similar changes. Short-term supply dropped 38% during Q1, while long-term holdings increased by 1%. This shift suggests that weaker holders exited while stronger investors accumulated positions during the crypto market bottom phase.
Bitcoin profitability metrics also show accumulation conditions. The Puell Multiple declined to 0.7, a level often associated with historical bottom zones. These combined signals strengthen the crypto market bottom outlook.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
