Nearly Half of Circulating Bitcoin Is Underwater, Suggesting Bottom May Not Be In
Summary
- CEX.IO said about 10 million BTC, or roughly half of the Bitcoin currently in circulation, is now underwater.
- It said the current BTC price has stabilized near $60,000, but unrealized losses remain similar to the 2018 and 2022 bear markets, making it difficult to conclude the market has found a bottom.
- Market participants say easing spot Bitcoin ETF outflows and whether institutional investment demand recovers will be key variables shaping BTC's medium- to long-term direction.
Forecast Trend Report by Period
Nearly half of the Bitcoin currently in circulation is being held at a loss.
Crypto trading platform CEX.IO said June 16 that about 10 million BTC was trading below its purchase price, or roughly half of the circulating supply.
CEX.IO said Bitcoin has recently stabilized near $60,000, but unrealized losses remain around levels seen in the 2018 and 2022 bear markets.
That suggests it is still difficult to conclude the market has formed a definitive bottom.
The firm added that outflows from spot Bitcoin exchange-traded funds have eased somewhat.
Bitcoin recently traded near $65,724, down 1.1%.
Market participants say the scale of investor losses remains elevated, making spot Bitcoin ETF flows and a recovery in institutional demand key variables for Bitcoin's medium- to long-term direction.
