Nearly half of all Bitcoin is currently held at a loss as the cryptocurrency continues its steep decline from its all-time high. Data shows that 46% of the Bitcoin supply, approximately 9.09 million BTC, is underwater, with the benchmark asset trading within a prolonged descending channel. Both individual and institutional investors, including Strategy, are facing significant unrealized losses amid sustained bearish momentum.
Bitcoin has traded within a descending channel since falling from its peak value of $126,000. The cryptocurrency now trades at $66,689, reflecting a 20% monthly decline and a 47% drop from its all-time high.
Approximately 9.09 million bitcoins are now in the red, representing about 46% of the circulating supply according to on-chain data. Short-term holders’ unrealized loss sits around $113.9 billion, while long-term holders’ unrealized losses hold around $140 billion.
The sustained rise in losses indicates a strong bearish trend prevailing in the market. Realized loss jumped to $705 million on March 2nd, according to Checkonchain data.
With losses mounting across the market, Strategy and other institutional investors are now operating underwater. The firm holds 717,724 BTC with an average cost basis of $76,000, leaving 67% of its stack in the red.
The value of Strategy‘s holdings fell from a $79 billion peak to $47 billion at press time. The total value of Digital Asset Treasuries’ Bitcoin holdings has also declined from $125 million to $73 million.
Traditionally, rising losses have preceded bearish implications for the market. Holders tend to capitulate, reducing risk exposure and causing higher selling pressure.
Higher selling pressure accelerates downside risk, leading to lower prices as recently observed. The Relative Vigor Index is in negative territory, suggesting higher selling and less buying activity.
Such market conditions create room for more losses on Bitcoin’s price charts. The Future Grand Trend indicator points to a potential slip below $60,000 to $59,213.
Even more concerning is that, per the FGT, BTC is likely to continue trading within a descending channel. The analysis suggests $45,000 as a potential bearish case scenario.
