Bitcoin Supply in Loss Hits All-Time High of 10.83M BTC, Surpassing Prior Bear Market Bottoms

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Bitcoin Supply in Loss Hits All-Time High of 10.83M BTC, Surpassing Prior Bear Market Bottoms

The amount of Bitcoin held at a loss has reached a new all-time high of 10.83 million BTC, according to data from blockchain analytics firm Glassnode. This figure surpasses levels observed at previous bear market bottoms, signaling deepening unrealized losses across the network.

Record Levels of Unrealized Loss

The supply of Bitcoin in loss has risen sharply in recent months. In February, the metric stood at 9.8 million BTC before climbing past 10.7 million BTC this month. The last time the figure exceeded 10.5 million BTC was near the bear cycle lows of 2019 and 2020, periods that marked significant market troughs.

The current reading of 10.83 million BTC represents the highest absolute number of coins held at a loss in Bitcoin’s history. This metric tracks all coins whose current market price is lower than the price at which they were last moved on-chain.

Long-Term Holders Under Pressure

A notable portion of the loss is concentrated among long-term holders (LTHs) — addresses that have held Bitcoin for at least 155 days. Glassnode reports that the volume of coins held at a loss by LTHs has reached 5.58 million BTC, the second-largest amount on record.

This figure is only exceeded by the March 2020 COVID-19 crash, when over 5.6 million BTC held by LTHs were underwater. The current level indicates that even patient, long-duration investors are experiencing significant paper losses in the current market environment.

What This Means for the Market

The surge in supply in loss typically reflects broad price declines and can be a contrarian indicator of market stress. Historically, extreme levels of unrealized loss have preceded market bottoms, though timing remains uncertain. The concentration of losses among long-term holders suggests that even those with high conviction are not immune to the current downturn.

Analysts caution that while the metric signals deep bearish sentiment, it does not guarantee an immediate reversal. Market recoveries often require time for absorption and reaccumulation.

Conclusion

The record 10.83 million BTC in loss highlights the severity of the current bear phase, with long-term holders experiencing losses not seen since the 2020 crash. While historically such extremes have preceded recoveries, the data underscores the ongoing pressure across the Bitcoin market.

FAQs

Q1: What does ‘Bitcoin supply in loss’ mean?
It refers to the total number of Bitcoin coins whose current market price is below the price at which they were last transacted on the blockchain, indicating unrealized losses for holders.

Q2: Why is the long-term holder metric important?
Long-term holders are typically seen as the most resilient investors. When a significant portion of their holdings goes into loss, it can signal extreme market stress and potential capitulation.

Q3: Has the supply in loss ever been higher?
No. The current 10.83 million BTC is an all-time high, surpassing previous peaks seen during the 2019 and 2020 bear market bottoms.

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