Bitcoin UTXO metrics suggest the market is entering a 'surrender phase' and nearing the cycle bottom.

Huo Xing Cai Jing reports, according to Cointelegraph, CryptoQuant analyst Darkfost stated that Bitcoin’s unspent transaction output (UTXO) data shows the ratio of loss-making trades to profit-making trades has fallen to the lowest level of this bear market cycle, indicating that investors are entering a clear “capitulation” phase. This indicator has previously triggered multiple times at historical cycle bottoms. The last similar low occurred during the mid-2023 bear market depth, when Bitcoin’s price briefly dropped to around $26,000; analysts believe such phases typically correspond to extreme market pessimism, as long-term investors begin gradually accumulating again. Darkfost noted this is the first time this signal has triggered since the start of this correction, indicating a significant rise in the number of UTXOs being sold at a loss, reflecting broader selling and capitulation behavior. He also added that the Bitcoin Spent Output Profit Ratio (SOPR) of long-term holders is gradually entering negative territory.