Bitcoin Trapped Below $95,000 with 6.7M BTC in Losses — Highest in Cycle, Says Glassnode

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Bitcoin (BTC) continues to struggle below the $95,000 mark, with approximately 6.7 million BTC currently held at a loss—marking the highest level of loss-bearing supply in the current market cycle, according to on-chain analytics firm Glassnode. This data highlights persistent selling pressure and investor capitulation, potentially signaling a prolonged consolidation phase amid broader market uncertainties.

Glassnode's Key Findings on BTC Supply
In its latest report, Glassnode revealed that 6.7 million BTC—representing about 34% of the circulating supply—are underwater, meaning they were purchased at prices higher than the current market value. This figure surpasses previous cycle peaks, such as during the 2022 bear market, and indicates widespread unrealized losses among holders. Bitcoin's price has hovered around $90,000-$94,000, failing to break the $95,000 resistance despite bullish catalysts like ETF inflows.

Glassnode attributes this to a combination of profit-taking from early cycle buyers and new entrants buying at highs. The firm notes that such high loss-bearing supply often precedes market bottoms, as it reflects "capitulation" where weak hands sell off.

What Is Loss-Bearing Supply and Why It Matters
Loss-bearing supply refers to the amount of BTC held by addresses where the average purchase price exceeds the current spot price. At 6.7 million BTC, this is the cycle's record, per Glassnode, signaling elevated fear and potential for further downside if selling intensifies. Historically, spikes in this metric have correlated with price troughs, followed by recoveries as supply is absorbed by long-term holders.

This comes amid Bitcoin's struggle to reclaim all-time highs above $100,000, influenced by macroeconomic factors like interest rate hikes and geopolitical tensions.

Market Implications and Investor Sentiment
The high loss-bearing supply could suppress upward momentum, trapping BTC below $95,000 and leading to choppy trading. However, Glassnode suggests it may also create buying opportunities for accumulators, as similar patterns in past cycles led to rallies once losses peaked.

Sentiment indicators, like the Fear & Greed Index at 40 (neutral), reflect caution. Analysts warn of volatility but see potential for a breakout if institutional buying resumes. "This level of underwater supply is a classic cycle signal—patience could pay off," noted crypto trader Peter Brandt.

Outlook for Bitcoin
As Bitcoin navigates this phase, watch for catalysts like US Fed decisions or ETF flows to shift dynamics. Glassnode's data underscores the cycle's maturity, with potential for recovery if losses stabilize. For the latest on loss-bearing Bitcoin supply and Glassnode insights, stay informed—crypto markets remain volatile; invest wisely.