Bitcoin Exhaustion Warning: Fed Rate Cut Fails to Trigger Rally as SOPR Drop and Low Sharpe Signal Bull Cycle Ending

Bitcoin failed to rally after last week’s Fed rate cut, Cointelegraph reported, prompting reassessment of the current bull cycle. Alphractal founder Joao Wedson noted that on-chain metrics exhibit signs of cyclical exhaustion, with the SOPR drifting lower and the Sharpe ratio falling below 2024 levels — measurable signals that point to reduced risk-adjusted returns and an elevated chance of a deeper retracement. Those observable shifts suggest constrained near-term demand from large institutional investors, even if prices revisit prior highs, and indicate potential capital rotation toward altcoins for differentiated return opportunities. Market participants should foreground realized-profit indicators and volatility-adjusted performance when recalibrating exposure.

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