Bitcoin Profit Share Dives to Bear Market Levels

The number of Bitcoin held at a profit has declined to levels approaching those seen during the 2022 bear market, according to CryptoQuant analyst Darkfost. Approximately 11.2 million Bitcoin are currently in profit, down from highs earlier in the cycle, while about 8.2 million are now held at a loss.

Glassnode data confirms that the number of Bitcoin held at a loss is at levels not recorded since late 2022. This suggests that the market is reaching a notable level of undervaluation, comparable to the conditions observed during the previous bear market, Darkfost said.

However, Bitrue exchange research lead Andri Fauzan Adziima argued that the data reflects 'increasing market stress, not immediate undervaluation.' He noted that true capitulation bottoms during 2022 involved more than 50% of supply in loss and profit ratios of 45% or lower.

Bitcoin has declined approximately 52% from its all-time high this cycle, a smaller drawdown than the 77% to 84% drops recorded in previous bear markets. Some analysts have pointed to that narrower decline as a sign of structural maturity in the market.