Capitulation Signal Triggers as Bitcoin's Unspent Outputs Hit New Low

CryptoQuant analyst Darkfost has identified a significant signal in Bitcoin's unspent transaction outputs (UTXOs) that suggests capitulation is underway. This pattern, which has historically coincided with bear market bottoms, shows that investors are selling at a loss.

The ratio of UTXOs spent in profit versus at a loss has fallen to its lowest level this bear market cycle, according to Darkfost. This metric demonstrates that the number of UTXOs spent at a loss is reaching significant levels, reflecting the start of a broader capitulation.

This signal has triggered for the first time since the start of the correction and corresponds to the moment when the majority gives up and loses interest. The last time it fell this low was in mid-2023, when BTC prices were around $26,000.

Darkfost notes that this period has always been profitable for long-term investors, who are now entering a capitulation phase. However, he also warns that the correction has been fueled by short-term holders, and selling pressure may increase in the coming weeks.