Analysis: Bitcoin Holders Face Nearly $600 Billion in Unrealized Losses, Retail Selling Pressure Remains High

Odaily News Bitcoin traded at $66,450 on Thursday, with approximately 44% of the circulating supply in a state of loss, accumulating unrealized losses of about $59.87 billion (approximately 8.8 million BTC), which is weighing on market sentiment. Data indicates that market demand remains weak. Glassnode pointed out that the scale of this supply overhang is similar to that of the second quarter of 2022, when the market only recovered after about 3 million BTC were redistributed.

Long-term holders (LTH) have begun selling below their cost basis, with cumulative realized losses for Bitcoin LTH reaching $200 million, showing signs of active "capitulation selling." The current BTC price is also below the average cost basis of $83,408 for U.S. spot Bitcoin ETF holders, further indicating investor pressure.

The decline in market risk appetite is also reflected in outflows from investment products. In the week ending March 27, Bitcoin investment products saw net outflows exceeding $194 million. Capriole Investment indicators show BTC's apparent demand at -1,623 BTC. CryptoQuant stated that retail selling still dominates and confirmed the market is in a sustained distribution phase. The Coinbase Premium Index remains persistently negative, indicating U.S. investors have not entered the market on a large scale, which aligns with the trend of shrinking on-chain demand. (Cointelegraph)