CryptoQuant analyst Darkfost said the Bitcoin market is approaching an important holder pain threshold, with the number of loss-making UTXOs continuing to rise and the loss-to-profit ratio reaching an extreme level on the loss side. He said this kind of reading is usually seen only during periods of heavy market stress, including bear markets. The metric compares the number of profitable and unprofitable UTXOs to assess market conditions and is not affected by price swings. Darkfost said the expanding scale of coins being held at a loss could offer an accumulation window for long-term investors. He also noted that when profitable UTXOs sharply lift the ratio, the optimistic phase in the market may serve as a signal of a turning point.
CryptoQuant analyst Darkfost said the Bitcoin market is nearing an important pain threshold for holders, as the number of loss-making UTXOs continues to increase and the UTXO loss-to-profit ratio has reached an extreme level on the loss side.
According to Darkfost, this level is typically seen only during periods of strong market stress, such as bear markets. The indicator measures market conditions by comparing the number of profitable and loss-making UTXOs, and he said it is not affected by price volatility.
Darkfost said the current expansion in the scale of holdings sitting at a loss may offer an accumulation opportunity for long-term investors. At the same time, he added that when profitable UTXOs significantly push up the ratio, the market's optimistic phase could also serve as a signal of a turning point.
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