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

Odaily According to data, Bitcoin traded at $66,450 on Thursday, with approximately 44% of its circulating supply in a loss position. The cumulative unrealized losses amount to about $59.87 billion (approximately 8.8 million BTC), which is weighing on market sentiment. The data indicates that market demand remains weak. Glassnode points 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. The cumulative realized losses for Bitcoin LTH have reached $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 a net outflow exceeding $194 million. Capriole Investment's indicator shows BTC's apparent demand at -1,623 BTC. CryptoQuant states that retail selling continues to dominate and confirms the market is in a phase of sustained distribution. The Coinbase Premium Index remains persistently negative, suggesting U.S. investors have not entered the market on a large scale, which aligns with the trend of shrinking on-chain demand. (Cointelegraph)