The swift rise in unprofitable Bitcoin supply ($BTC) is sparking fresh worries regarding market behavior. Recent insights from the on-chain analytics firm Glassnode reveal that nearly 44% of the circulating Bitcoin supply currently sits in a loss state.
Currently, Bitcoin trades at around $66,450, reflecting a decline of about 47% from its all-time high of $126,000 achieved in October 2025. This downturn has led to investors incurring unrealized losses totaling approximately $598.7 billion. The data indicates that roughly 8.8 million $BTC are experiencing losses.
Glassnode compares the present scenario to the market conditions observed during Q2 of 2022. They suggest that mitigating such substantial losses generally necessitates a transfer of assets from those currently at a loss to new entrants who are purchasing at lower price points.
Long-term holders (those maintaining their investments for over 155 days) have reported daily realized losses escalating to $200 million. Glassnode views this as “confirmation of active stop-loss sales.” Their analysis suggests that if this figure drops below $25 million per day, it would serve as an important indicator signaling reduced selling pressure—a historical marker often preceding market bottoms.
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Conversely, it’s important to highlight that Bitcoin’s spot price remains beneath $83,408—the average cost level for U.S.-based spot Bitcoin ETF investors—indicating increasing strain on these ETF participants. In fact, during the week ending March 27th alone, there was a net outflow exceeding $194 million from global investment products related to Bitcoin.
The weakness observed on the demand side further reinforces concerns about market prospects. Data from Capriole Investments shows an “apparent demand” indicator for Bitcoin standing at -1,623 $BTC, indicating seller dominance within the marketplace. Additionally, CryptoQuant highlights ongoing demand contraction since November 2025 as evidence that we remain entrenched in a “distribution phase.”
*This should not be construed as investment advice.