In today’s Bitcoin news, BTC continues to face mounting pressure as on-chain data shows millions of coins are now underwater. The current market structure also resembles past bear market phases, while sentiment across the broader crypto market continues to weaken.
7.75 Million BTC Now Held at a Loss
Glassnode data shows that approximately 7.75 million BTC are currently being held at a loss at current price levels. The chart, which tracks Bitcoin’s total supply in loss using a 7-day moving average, shows the metric has surged sharply in recent months as BTC struggles below key resistance levels.
Interestingly, the latest spike pushes the metric closer to levels historically seen during major bear market phases. Previous cycles in 2018, 2020, and 2022 also recorded sharp increases in underwater supply before eventual market capitulation and recovery phases emerged.
The analytics platform noted that a large portion of holders accumulated Bitcoin at significantly higher prices during previous rallies. However, with BTC trading far below those levels, many investors now remain trapped in unrealized losses.
This supply overhang often creates additional selling pressure as underwater investors attempt to exit positions during temporary recoveries. The latest Glassnode chart further suggests that the number of coins held at a loss has continued to rise alongside weakening demand.
Bear Market Structure Continues to Dominate
Meanwhile, the current setup continues to reflect a classic bear market structure. Historically, large amounts of BTC being held at a loss have consistently appeared during prolonged market downturns.
Notably, as selling pressure continues to build, weaker market participants often begin to capitulate. In previous market cycles, similar conditions persisted for extended periods before panic selling ultimately signaled the final stages of broader market exhaustion.
In addition, bear market environments rarely reverse overnight. Instead, these phases tend to linger until stronger demand, renewed liquidity, and investor confidence gradually return to the market. Interestingly, recent estimates further suggest that Bitcoin demand continues to gradually contract, signaling weaker appetite from both retail and institutional participants.
Sentiment Weakens Across the Crypto Market
The broader crypto market has also shown signs of weakening sentiment as several major digital assets remain under pressure. Ethereum, the second-largest cryptocurrency, is currently facing severe FUD amid intensifying bearish sentiment. Reports of scientists and researchers exiting the Ethereum ecosystem have also weakened confidence around the network.
At the same time, ETH continues to struggle to break above the crucial $2,200 resistance mark. Failure to reclaim that level could expose the token to further downside pressure in the near term. Meanwhile, Bitcoin’s inability to reclaim the crucial $78,000 psychological price level has added to the growing bearish sentiment across the crypto market.
Nevertheless, some long-term holders remain optimistic about Bitcoin’s future outlook despite the ongoing weakness. CryptoQuant analyst Darkfost recently noted that, historically, periods of extreme fear and heavy unrealized losses have often preceded major market recoveries.
Josiah Oluwadare
