The percentage of Bitcoin held by investors at a profit has declined to approximately 59%, nearing levels associated with past market bottoms. On-chain analysis also shows the number of addresses depositing BTC to exchanges has fallen to a 10-year low, indicating subdued market activity and potential exhaustion of selling pressure.
The share of Bitcoin supply still in profit has dropped to around 59%, a figure well below the historical average of about 75%. This brings it closer to the 50% threshold that has historically signaled market bottoms.
Analyst Darkfost stated “Nearly 1 BTC out of 2 is held at a loss.” The current environment, according to the analyst’s data shared on X, appears more suited for accumulation than for selling. The strategy suggested is to acquire BTC when losses reach extreme levels.
In a separate observation noted on CryptoQuant, the number of Bitcoin addresses depositing funds to exchanges has dipped to about 31,000 per day. This is the lowest reading on a 30-day moving average since 2017.
The analyst attributed this fall to investor disengagement, price levels with no incentive to sell, and a structural shift toward self-custody. “Although such an environment is typically unfavorable in the short term, these phases often coincide with periods where selling pressure progressively exhausts itself,” the analyst explained.
Analytics provider Glassnode also described the current market environment as “subdued and low-conviction.” The platform noted that spot activity was soft and that BTC was trading inside the bear market value zone.
At the time of writing, the flagship cryptocurrency was trading near $71,000. It retreated from a three-week high close to $73,000, which was driven by geopolitical developments and reports regarding crypto usage for trade passages.
