Bitcoin Falls Deep Into Loss Territory as Market Sentiment Cools
Recent on-chain metrics reveal that 40% to 45% of the Bitcoin supply is now trading below holders’ cost basis. This threshold has historically signaled the early stages of bear markets, raising alarms among investors.
When a significant portion of supply moves into loss, it often triggers psychological shifts. HODLers grow anxious, and weaker hands begin to exit, increasing downward pressure on price.
What Makes This Indicator Powerful?
- Maps real-time cost basis across the network
- Reflects growing stress among short-term holders
- Typically precedes deeper price corrections
While long-term investors remain relatively calm, signs of distress are mounting. Rising exchange inflows and declining network activity suggest mounting sell-side pressure.
Analysts warn that without a strong rebound, the loss ratio could climb further, potentially fueling a cascade of forced liquidations. Market participants are advised to monitor on-chain trends and macro developments closely in the weeks ahead.