Bitcoin Profit Supply Drops to 59%, Nearing Bear Market Levels

The 50% profit level has served as a rough threshold for market bottoms, and at 59%, the current figure is approaching that floor.

Bitcoin’s (BTC) supply share of profits has fallen to around 59%, bringing it closer to levels seen during the last bear market.

This comes from data shared by analyst Darkfost, who also highlighted that the number of addresses depositing BTC had fallen to a 10-year low.

Profit Supply Is Approaching Bear Market Territory

In an article published on X on April 9, Darkfost revealed that the share of Bitcoin supply still profitable was well below the historical average of around 75%.

“Nearly 1 in 2 BTC is held at a loss,” they wrote.

The analyst clearly underlined the importance of this figure, saying that for Bitcoin to maintain upward price pressure, it needed to have a healthy portion of its investors sitting on gains. When so many are in the red, the pool of willing sellers shrinks, making it harder to generate organic demand and leading to price stagnation.

According to data, in the past, the 50% mark was a rough threshold for market bottoms, and while the current figure is still above that level, the direction ahead is clear.

Darkfost’s conclusion was straightforward: the current environment “seems more conducive to accumulation than selling”, with the strategy being to recover BTC when losses reach extreme levels and only reduce exposure when the profit supply approaches 100%.

Weakening of activity on the stock markets

In a separate update, Darkfost also noted that the number of Bitcoin addresses depositing funds on exchanges fell to around 31,000 per day over a 30-day moving average, which is the lowest since 2017.

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The on-chain technician attributed the drop to a mix of investor disengagement during a prolonged correction, price levels that do not encourage selling, and a structural shift toward self-custody and decentralized platforms that have grown since FTX’s collapse.

“Even if such an environment is generally unfavorable in the short term, these phases often coincide with periods where selling pressure gradually exhausts,” explains the analyst.

Analytics provider Glassnode also made a similar assessment, describing the current market environment as “moderate and unconvincing.” The platform also noted that spot activity was rather weak and that BTC was trading “inside the bear market value zone.”

At the time of writing, the flagship cryptocurrency was changing hands at nearly $71,000 after retreating from a 3-week high near $73,000, which was driven by the announcement of a ceasefire between the United States and Iran, as well as reports that Iran would require ships accessing the Strait of Hormuz to pay for their passage using crypto.