Over 25% of Bitcoin Supply Is Now in Loss

Over 25% of the Bitcoin supply is currently in loss, signaling growing pressure on holders amid recent market shifts.

  • 25.8% of total Bitcoin supply is in loss.
  • Over 5.1 million BTC affected, per CryptoQuant.
  • Signals potential market pressure or consolidation.

According to on-chain data from CryptoQuant, 25.8% of Bitcoin’s total supply—equivalent to more than 5.1 million BTC—is currently being held at a loss. This figure reflects wallets that bought Bitcoin at a higher price than the current market value.

While not unusual in volatile markets, this level of unrealized loss often reflects investor unease or market consolidation. It can also indicate that many traders bought during local price peaks, possibly driven by hype or fear of missing out.

What This Means for Bitcoin Holders

Historically, when a large portion of the Bitcoin supply goes into loss, two potential scenarios may unfold. Either holders choose to sell, leading to increased downward pressure on the market, or they hold through the dip, waiting for a price recovery.

Such patterns often test the confidence of retail investors and long-term holders alike. The current 25.8% loss ratio suggests we’re in a correction phase, following recent volatility in crypto markets.

Looking Ahead: Consolidation or Capitulation?

This data point could be a precursor to market stabilization or a sign of potential capitulation if prices continue to decline. Long-term investors often use such metrics to gauge entry points or identify signs of bottom formation.

CryptoQuant’s analytics suggest that while losses are mounting, the majority (over 70%) of Bitcoin remains in profit, showing resilience and suggesting that seasoned holders may still be unfazed.

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Disclaimer: The content on CoinoMedia is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency investments carry risks, and readers should conduct their own research before making any decisions. CoinoMedia is not responsible for any losses or actions taken based on the information provided.

Aurelien Sage

Aurelien Sage is a blockchain enthusiast and writer, crafting insightful articles on decentralized technologies, Web3, and the future of finance. His work simplifies complex concepts, empowering readers to navigate the evolving crypto landscape with confidence.

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