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 its circulating supply in a loss position. The cumulative unrealized loss amounts to 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 Q2 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 loss for Bitcoin LTHs has 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 investment product outflows. In the week ending March 27, Bitcoin investment products saw a net outflow exceeding $194 million. Capriole Investment's metrics show BTC's apparent demand at -1,623 BTC. CryptoQuant stated that retail selling still dominates and confirmed 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)