Bitcoin Flashes 'Warning Sign' With Nearly Half of BTC Supply Sitting at a Loss: Report
About 47% of all Bitcoin holders, including over 30% of long-term holders, currently hold their coins at unrealized losses, representing the largest underwater share since 2023. Long-term holders are realizing their steepest losses in three years, reflecting weakening confidence despite a slight recent price increase. Over the past week, Bitcoin’s price has dropped roughly 6%, partly due to growing geopolitical tensions involving Iran, and currently trades around $66,567—about 47% below its all-time high of $126,080 from October. CEX.io’s Bitcoin Impact Index now signals “high impact,” meaning significant stress among holders and institutions. This divergence between price trends and on-chain conviction resembles conditions seen in mid-2018 and mid-2022 before major price drops. If a similar decline occurs, prices could fall below $50,000. However, many holders are not moving Bitcoin to exchanges, which may help prevent a steeper drop. Other analysts expect possible further downside, with support levels around $50,000–$55,000 before potential recovery.
