CryptoQuant Analyst Darkfost Says Bitcoin UTXO Metric Signals Broader Capitulation Phase

Bitcoin’s unspent transaction output (UTXO) profit-and-loss ratio has fallen to its lowest level since the current bear market began, a move that CryptoQuant analyst Darkfost said signals the market is entering a broader capitulation phase. According to Foresight News, Darkfost said this is the first time the indicator has issued such a signal during the current correction.

Darkfost said the number of UTXOs being sold at a loss has reached a notable level, which historically has often aligned with bear-market bottom regions and has offered longer-term investors a potentially favorable allocation window. He added that the last time the metric dropped to a similar level was in mid-2023, when Bitcoin’s price briefly fell to about $26,000.

He also said long-term holders’ spent output profit ratio (SOPR) is gradually moving into negative territory, indicating long-term holders may be entering a capitulation phase. Darkfost attributed the current correction mainly to short-term holders transferring large amounts of Bitcoin to exchanges.

Separately, on-chain analytics firm Swissblock said Bitcoin has largely completed the first phase of its decline and is now in a bottom-building phase, with prices trending more stable but market momentum still weak.

Risk-off sentiment also increased after the United States carried out another weekend airstrike on Iranian targets. Bitcoin briefly fell to $59,800 before rebounding to around $60,100.