Glassnode data reveals that 54% of Bitcoin's circulating supply, or 10.83 million BTC, is now held at a loss, surpassing the 46% still in profit. This marks a significant shift where underwater coins now exceed profitable ones, indicating substantial capitulation from recent buyers. The report suggests that while newer, likely institutional or 'Wall Street' investors, are selling into losses, long-term holders are accumulating these discounted coins. This dynamic signals a potential bottoming process, as strong hands absorb supply from weaker ones, setting the stage for future price recovery if accumulation continues.
The increasing percentage of Bitcoin supply held at a loss, coupled with long-term holder accumulation, indicates a significant market re-distribution. This absorption of sell pressure by resilient holders is a classic bottoming signal, suggesting a potential stabilization and future upward trajectory for Bitcoin and the broader crypto market.
This market structure reveals a classic capitulation phase where recent buyers are exiting at a loss, while seasoned investors are accumulating. This transfer of supply from weak to strong hands typically precedes a market bottom, implying a bullish reversal is forming.
Glassnode's latest Week Onchain report shows that roughly 10.83 million BTC are now in the red, against 9.22 million still in profit. Loss-making supply now accounts for roughly 54% of the measured total, compared with 46% still in profit, meaning underwater coins exceed profitable coins by about 1.