Bitcoin (BTC) traded at $66,450 on Thursday, a 47% drawdown from its all-time high of $126,000 reached in October 2025. As a result, many BTC holders are sitting on significant unrealized losses, underscoring the risks still facing Bitcoin investors at current levels.
Key takeaways:
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Bitcoin’s 47% drawdown from its $126,000 all-time high has left holders with nearly $600 billion in unrealized losses.
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Apparent demand and buying from US investors remain in deep contraction, suggesting broader market distribution.
44% of Bitcoin circulating supply now in the red
BTC/USD trades 24% below its yearly open of $87,500 after it closed 2025 in the red. The prolonged weakness has pushed a significant portion of its supply underwater.
As Bitcoin trades at $66,450 on Thursday, roughly 8.8 million BTC are held at a loss, representing $598.7 billion in unrealized losses, or more than 44% of the circulating supply, according to data from Glassnode.
Related: Bitcoin risks new lows as US dollar targets highest level since April 2025
The magnitude of this figure implies a “structural resemblance to conditions observed in Q2 2022,” Glassnode said in its latest Week On-chain newsletter.
Glassnode explained that the 2022 bear market provides a precedent when roughly 3 million BTC needed to be redistributed before the market could recover.
BTC: Total supply in loss. Source: GlassnodeThis mounting paper loss has eroded conviction, prompting long-term holders (LTH) to capitulate by selling below their cost basis.
LTH realized loss, a metric that measures the aggregate dollar value of Bitcoin sold at a loss by investors who have held BTC for more than 155 days, has risen to $200 million, “confirming active capitulation,” Glassnode said, adding:
Bitcoin LTH realized loss. Source: GlassnodeBTC’s spot price is also below the average cost basis of US spot Bitcoin ETF holders, currently at $83,408, suggesting that these investors are increasingly under strain.
US spot Bitcoin ETF cost basis chart. Source: GlassnodeThe risk-off sentiment is also seen in global Bitcoin investment products, which recorded more than $194 million in net outflows during the week ending March 27.
Bitcoin apparent demand contraction persists
Bitcoin’s apparent demand has stayed negative since mid-December 2025, as traders and investors continue to be risk-off amid BTC’s price weakness.
Capriole Investment’s Bitcoin Apparent Demand metric shows that the demand for Bitcoin is at -1,623 BTC on Thursday, and that sellers are in control.
Bitcoin apparent demand. Source: Capriole Investments.The continued contraction in total apparent demand indicates persistent “selling from retail,” CryptoQuant said in its latest Weekly Crypto report, adding:
Meanwhile, Bitcoin’s Coinbase Premium Index, which measures the difference in pricing between the BTC/USD pair on Coinbase and Binance, also remains in negative territory.
“The persistent negative premium indicates that US investors have not yet re-entered the market at scale,” CryptoQuant said, adding:
Bitcoin Coinbase Premium Index. Source: CryptoQuantAs Cointelegraph reported, Bitcoin price risks new lows in the short term amid a strengthening US dollar.
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