Bitcoin Capitulation Signals Market May Be Bottoming Out

CryptoQuant analyst Darkfost has found evidence of capitulation in the Bitcoin market. The ratio of spent unspent transaction outputs (UTXOs) that were profitable versus those at a loss has fallen to its lowest level this bear cycle.

According to CryptoQuant data, this signal has only triggered once before during the current correction, and it coincided with a significant price low in mid-2023 when BTC prices fell to around $26,000. Darkfost noted that 'these periods have always been profitable for long-term investors'.

The Spent Output Profit Ratio (SOPR) has also moved into negative territory for long-term holders, indicating they are selling their coins at a loss. However, short-term holders have continued to fuel the correction with rapid inflows to exchanges.