Nearly Half of Circulating Bitcoin Is Underwater, Signaling Market May Not Have Bottomed
Summary
- CEX.IO said about 10 million BTC, or roughly half of circulating Bitcoin (BTC), is currently being held at a loss.
- It said unrealized losses remain similar to levels seen in the 2018 and 2022 bear markets, making it difficult to conclude the current market has formed a full bottom.
- Market participants said that with investor losses still high, future spot Bitcoin ETF flows and a recovery in institutional investment demand will be key factors determining 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, equivalent to roughly half of the circulating supply.
Bitcoin has recently stabilized near $60,000, but unrealized losses remain at levels similar to those seen during the 2018 and 2022 bear markets, CEX.IO said.
That suggests it is still difficult to conclude that the market has formed a definitive bottom.
The firm added that outflows from spot Bitcoin exchange-traded funds have shown some signs of easing.
BTC recently traded around $65,724, down 1.1%.
With investor losses still elevated, market participants say future spot Bitcoin ETF flows and any recovery in institutional demand will be key factors shaping BTC's medium- to long-term direction.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
