The on-chain analytics platform, Glassnode, has disclosed the amount of Bitcoin supply currently in the red. This comes as BTC continues to trade beneath the critical $90,000 threshold after a decline that started last month.
The Quantity of Bitcoin Supply Experiencing Loss
According to a report from Glassnode, the Bitcoin supply that is at a loss has climbed to 6.7 million BTC, marking the peak of loss-bearing supply seen in this cycle. The platform further emphasizes that this is equivalent to 23.7% of the circulating supply currently underwater. Of this, 10.2% is owned by long-term holders and 13.5% by short-term holders.
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Glassnode indicated that this distribution mirrors trends seen in previous cycle transitions into deeper bearish phases, as loss-bearing Bitcoin acquired by new buyers gradually shifts towards the long-term holder group.
Additionally, Glassnode pointed out that the ongoing 6-7 million loss range, persistent since mid-November, reflects early transitional stages of past cycles, where rising investor frustration preceded a shift to more bearish conditions and heightened capitulation at lower Bitcoin prices.
Importantly, Bitcoin prices have fallen to levels last recorded in 2024, wiping out year-to-date (YTD) gains. Glassnode revealed this has created a dense supply cluster formed by top buyers in the $93,000 to $120,000 interval. The consequent supply distribution is said to represent a top-heavy market structure where attempts at recovery face significant overhead selling pressure, particularly in the early days of a bearish phase.
Glassnode has stated that while Bitcoin remains below this price range and cannot regain key benchmarks, such as the Short-Term Holder Cost Basis at $101,500, the chances for further downward correction remain high.
Volatile BTC Spot Demand
Glassnode observed that Bitcoin spot market flows still reflect an inconsistent demand pattern across major platforms. The Cumulative Volume Delta indicates sporadic bursts of buying activity but has not developed into consistent accumulation, particularly during recent pullbacks in BTC price.
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The on-chain analytics platform noted that the Coinbase spot CVD remains relatively positive, signaling steadier engagement from US investors. Conversely, Binance and overall Bitcoin flows appear erratic and largely aimless. Glassnode remarked that these divergence points indicate a selective approach rather than a coordinated spot demand.
In light of the recent Bitcoin price declines, the platform pointed out that these drops haven’t precipitated significant increases in positive CVD. Glassnode noted this suggests that dip buying remains strategic and short-lived. Without consistent accumulation across all platforms, Bitcoin’s price movement largely hinges on activity in the derivatives market and liquidity conditions, rather than genuine spot demand.
Currently, Bitcoin is trading around $86,800, having risen in the last 24 hours, as per CoinMarketCap data.
Featured image from Pixabay, chart from Tradingview.com
