Key facts
- Bitcoin fell to $59,685, its lowest level since October 2024.
- The percentage of Bitcoin supply held in profit has fallen to approximately 55%.
- Market expert Darkfost believes the profit indicator could breach 50% sooner than expected.
- CryptoQuant founder Ki Young Ju describes the current market as a distribution phase.
- Over 1.24 million BTC have been removed from circulation by MicroStrategy and ETFs since January 2023.
- Despite significant BTC removal, the price has returned to similar levels seen in March 2024.
Bitcoin (BTC) has experienced a significant pullback, falling to approximately $59,685, its lowest point since October 2024. This decline has led to a notable increase in unrealized losses for investors, with the percentage of Bitcoin supply held in profit dropping to about 55%. Market expert Darkfost suggests this metric could fall below 50%, a level seen in previous bear markets, sooner than anticipated. CryptoQuant founder Ki Young Ju characterizes the current market structure as a distribution phase, indicating a significant change of hands. Despite substantial Bitcoin accumulation by MicroStrategy (over 711,000 BTC) and ETFs (over 509,000 BTC) since January 2023, the price has returned to levels seen in March 2024. The average cost basis for Bitcoin investors is around $53,000, a level that historically marks the end of bear markets when prices drop below it, though Ki Young Ju believes this level may be hard to revisit due to sustained institutional buying and strategies like Michael Saylor's minimal selling.