Bitcoin investors sit on $59.87 billion in unrealized losses as retail selling persists

ChainCatcher reports that Bitcoin was trading at $66,450 on Thursday. About 44% of the circulating supply is currently underwater, representing roughly 8.8 million BTC and an estimated $59.87 billion in unrealized losses, weighing on sentiment as demand remains soft. Glassnode said the size of this supply overhang is comparable to the second quarter of 2022, when around 3 million BTC had to change hands before the market could recover. Long-term holders (LTHs) have started selling below their cost basis. Realized losses among LTHs have reached $200 million, a development Glassnode frames as a constructive "selloff capitulation" signal. Bitcoin is also trading below the average cost basis of $83,408 for U.S. spot Bitcoin ETF holders, pointing to continued investor pressure. Risk appetite has weakened across crypto investment products as well, with net outflows topping $194 million in the week ended March 27. Capriole Investment's indicator puts Bitcoin's apparent demand at 1,623 BTC. CryptoQuant adds that retail selling continues to dominate, keeping the market in an extended distribution phase. The Coinbase premium index remains negative, suggesting U.S. investors have yet to return in force, in line with shrinking on-chain demand.