Glassnode: 44% of Bitcoin Supply Now Underwater as BTC Extends Pullback

A sharp rise in Bitcoin's loss-making supply is adding to worries about market conditions. On-chain analytics firm Glassnode reports that about 44% of circulating BTC is currently held at an unrealized loss. Bitcoin is trading near $66,450, roughly 47% below its October 2025 peak of $126,000. The drawdown leaves investors with an estimated $598.7 billion in unrealized losses, with around 8.8 million BTC in the red. Glassnode says the setup resembles the market structure seen in Q2 2022. It notes that absorbing losses of this scale typically requires coins to move from underwater holders to new buyers willing to step in at lower price levels. Long-term holders (coins held more than 155 days) have seen daily realized losses climb to about $200 million. Glassnode calls this a "confirmation of active stop-loss sales." In its framework, a drop in that metric below $25 million per day would be a meaningful sign that selling pressure has faded, a historical precursor to market bottoms. Bitcoin's spot price is also below $83,408, the estimated average cost basis for U.S. spot Bitcoin ETF investors, suggesting mounting pressure on that cohort. For the week ending March 27, global Bitcoin investment products recorded net outflows of more than $194 million. Demand indicators are also soft. Capriole Investments puts Bitcoin's "apparent demand" at 1,623 BTC, pointing to seller dominance. CryptoQuant adds that the demand contraction underway since November 2025 supports the view that the market remains in a "distribution phase." This is not investment advice.