On-chain data reveals that a significant portion of Bitcoin’s supply is currently held at a loss, which could influence volatility if the price recovers. According to CryptoQuant analyst Maartunn in a recent post on X, over 6.6 million BTC is held above the current spot price.
This analysis uses the “Supply In Loss” metric, which tracks the total amount of Bitcoin held at an unrealized loss. It works by checking the last transaction price of each coin against the current market price. If that previous price is higher, the coin is counted as being in loss. The metric totals all such coins to show the overall situation on the network. A related metric, “Supply In Profit,” tracks the opposite.
The chart shared by Maartunn shows that Bitcoin’s Supply In Loss dropped to zero when the price hit its all-time high above $126,000 in October. Since the subsequent market decline, the metric has risen sharply. Currently, about 6.6 million BTC—roughly one-third of the circulating supply—is held below its cost basis, marking the highest level of unrealized loss since 2023.
In another post, the analyst highlighted the UTXO Realized Price Distribution (URPD), which shows at what price levels different portions of the supply were last acquired. The chart indicates how the supply currently in loss is distributed across various price levels, with some levels holding significant clusters of supply.
Typically, investors holding at a loss may look to sell when the price returns to their break-even point, aiming to recover their initial investment. This can create selling pressure at specific price levels where large amounts of supply are concentrated, potentially leading to increased volatility.
Given the substantial amount of supply currently underwater, any move toward higher price levels could encounter selling pressure for Bitcoin.
Meanwhile, Bitcoin’s price has seen some recovery over the past day, rising back to around $88,600.
Frequently Asked Questions
Of course Here is a list of FAQs about the topic of 66 million bitcoins being purchased at higherthancurrent prices framed in a natural conversational tone
Beginner Definition Questions
1 What does it mean that 66 million bitcoins were purchased at higher prices
It means that the current owners of those 66 million BTC bought them when the price of Bitcoin was higher than it is today As a result if they sold now they would take a financial loss on that specific purchase
2 Is that a lot of Bitcoin
Yes thats a massive amount With only 21 million bitcoins that will ever exist 66 million represents over 31 of the total supply It shows a significant portion of investors are currently underwater on their investment
3 Who are these people holding these bitcoins
They could be a mix of individual retail investors large institutions longterm believers and even some early buyers who bought during the last major price peak
4 What is current market value or market price
Its simply the latest price at which Bitcoin was bought and sold on major exchanges Its the price you see on financial news or apps like Coinbase or Binance
Implications Market Impact Questions
5 Why is this statistic important
Its a key measure of market sentiment and potential future selling pressure It tells us how much of the supply is held at a loss which can influence whether people are likely to sell or hold
6 Does this mean Bitcoin is in trouble
Not necessarily Similar situations have happened after every major price peak in Bitcoins history It often indicates a period of consolidation or a bear market where weaker hands sell and stronger longterm believers accumulate more at lower prices
7 Could this create a big wave of selling
It could but it often doesnt all happen at once This is often called the capitulation phase where frustrated investors finally sell near the bottom However many longterm holders choose to wait rather than realize a loss
8 Whats the opposite of this situation
The opposite is when a large amount of Bitcoin is held at a significant profit