In a significant shift for Bitcoin holders, on-chain analytics firm Glassnode has reported that the cryptocurrency’s total supply in loss has surged to 8.33 million BTC. This increase comes as recently purchased tokens have been pushed underwater following a notable price drawdown.
Bitcoin Supply in Loss: A Rising Trend
According to Glassnode, the Total Supply in Loss metric is a crucial indicator that measures the amount of BTC currently held at a net unrealized loss. This analysis involves scrutinizing the transaction history of each token to ascertain the price at which it last changed hands. If the last recorded selling price exceeds the current market price, that coin is categorized as being at a loss.
The Total Supply in Loss aggregates all tokens that fit this criterion, while its counterpart, the Total Supply in Profit, reflects coins that are currently valued higher than their cost basis.
The latest data from Glassnode illustrates a dramatic fluctuation in the Bitcoin Total Supply in Loss over the past few years. Notably, a chart shared by the analytics firm reveals that this supply experienced a decline during April and early May, coinciding with a recovery in Bitcoin’s price. At its peak, the amount of BTC in loss dropped below 7 million, a stark contrast to the nearly 10 million BTC recorded after the market crash in February.
However, the recent downturn in Bitcoin’s value has reversed some of these gains. Following a retrace to $76,600, the supply in loss spiked to 7.75 million BTC, and with the latest drop to $73,000, this figure has now escalated to 8.33 million BTC.
The data indicates that approximately 580,000 BTC transitioned into loss territory due to this price correction, suggesting significant trading activity within the $73,000 to $76,600 range. As noted by Glassnode, this shift creates additional near-term sell pressure as holders reassess their positions amid the ongoing correction.
While the current state of the Bitcoin network remains more favorable than it was in February, the sustainability of this status is yet to be determined as the market navigates these fluctuations.
Current Bitcoin Price
As it stands, Bitcoin is trading around $73,200, reflecting a decline of more than 5% over the past week. Investors and analysts alike are closely monitoring the market as they consider potential strategies in light of the recent developments.
