Darkfost: Bitcoin net supply ratio turns negative, triggering a buy signal

According to CryptoQuant analyst Darkfost, Bitcoin's net supply ratio has remained in the negative range for a full week, with the latest reading falling to -0.075, triggering a buy signal. This indicator is based on the profit and loss status of Unspent Transaction Output (UTXO) and is used to assess whether the overall market supply is in a profit or loss condition. Darkfost believes this signal indicates the Bitcoin market is entering a stage of greater allocation value, with the last similar occurrence happening at the end of 2022. Darkfost notes that this indicator is not specifically designed to determine market tops or bottoms. Currently, multiple indicators show that selling pressure is fading, but further observation is needed to see whether demand will experience a meaningful recovery.