Bitcoin Capitulation Signal Triggers Amid Bear Market

Bitcoin's unspent transaction outputs (UTXOs) are signaling capitulation, according to an analyst at CryptoQuant. The ratio of UTXOs spent in profit versus loss has fallen to its lowest level this bear market cycle.

This is the first time this signal has triggered since the correction began, and it coincides with a pattern that has historically preceded bear market bottoms.

The last time this metric fell this low was in mid-2023, when BTC prices plummeted to around $26,000. Analyst Darkfost noted that long-term holders are starting to 'enter a capitulation phase,' with the Spent Output Profit Ratio (SOPR) moving into negative territory for this cohort.

However, he also pointed out that short-term holders have been fueling the correction with rapid BTC inflows to exchanges.