As bitcoin $BTC$61,486.75 fell below $59,100 on Wednesday, the number held at a loss rose to a record 10.83 million $BTC, data from Glassnode shows.
The largest cryptocurrency has tested the $60,000 level repeatedly since February, briefly falling below it several times. Four months ago, the supply in loss peaked at 9.8 million $BTC. It climbed to 10.78 million in early June.
Looking at previous bear market bottoms, around 10.5 million $BTC in loss is broadly consistent with the levels seen near cycle lows in 2019, 2020 and 2022.
Breaking this down further, 5.58 million $BTC are held at a loss by long-term holders (LTHs), defined by Glassnode as investors who have held their coins for at least 155 days. This is the second-highest level on record, behind only March 2020, when more than 5.6 million of the cohort’s bitcoin were held at a loss.
Even so, long-term holders now control approximately 14.8 million $BTC, another all-time high. With roughly 20 million $BTC in circulation, these investors hold close to 75% of the circulating supply, 37% of which are in the red,
Historically, long-term holders tend to accumulate and continue holding throughout bear markets, increasing their share of the supply. During periods of peak bull-market euphoria, they typically begin selling into market strength.
Leave a Reply