Bitcoin Dividend Supply Drops to 59%, Approaching Bear Market Levels

The 50% profit level has been an approximate threshold for market bottoms, and at 59%, the current reading is close to that threshold.

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

This comes from data shared by analyst Darkvost, who also noted that the number of addresses depositing Bitcoin has fallen to its lowest level in 10 years.

Earnings view is approaching bear market territory

In a post shared on X on April 9, Darkfost open The share of Bitcoin supply that is still profitable was well below the historical average of around 75%.

“Approximately 1 BTC out of 2 is held at a loss,” they wrote.

The analyst explained the importance of this number, saying that for Bitcoin to maintain upward price pressure, it needs a healthy share of its investors to maintain gains. When a large number of them are in the red, it shrinks the pool of willing sellers, making it more difficult to generate organic demand and stalling prices.

According to the data, in the past, the 50% mark served as an approximate threshold for market bottoms, and while the current figure is still above this level, the direction of travel is clear.

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

Weak activity in stock exchanges

And in a separate update, Darkfost as well male The number of Bitcoin addresses depositing funds on exchanges has fallen to about 31,000 per day on a 30-day moving average, the lowest level since 2017.

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The on-chain technician attributed the decline to a combination of lack of investor engagement during the prolonged correction, price levels that give no incentive to sell, and a structural shift toward self-custody and decentralized platforms that have been built since the FTX collapse.

“Although such an environment is usually unfavorable in the short term, these phases often coincide with periods in which selling pressure gradually exhausts itself,” the analyst explained.

Analytics provider Glassnode also made a similar assessment, a description The current market environment is considered “subdued and low conviction.” The platform also noted that spot activity was somewhat subdued and that Bitcoin was trading “within bear market cap territory.”

At the time of writing, the major cryptocurrency was trading near $71,000 after retreating from a 3-week high near $73,000, which was… Paid Through the announcement of a ceasefire between the United States and Iran, as well as emerging reports that Iran will require ships arriving in the Strait of Hormuz to pay for their passage using cryptocurrencies.