To calculate this metric, Glassnode analyzes the transaction history of each Bitcoin token to determine the last transfer price. When the latest selling price of a token is greater than its current market price, that token is classified as being held at a loss.<\/p>\n
The Total Supply in Profit is the contrasting metric to the Total Supply in Loss, representing the supply of Bitcoin tokens purchased at a price lower than the current market value.<\/p>\n
Below is a chart that illustrates the trends over time regarding Bitcoin\u2019s Total Supply in Loss, utilizing a 7-hour simple moving average (SMA):<\/p>\n
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The chart indicates that the Bitcoin Total Supply in Loss experienced a decrease in April and early May, correlating with a rise in Bitcoin\u2019s price. At its peak during this recovery phase, the supply at a loss dropped to below 7 million BTC. For perspective, this metric approached 10 million BTC in the wake of a price crash in February.<\/p>\n
However, following the price decline in late May, which saw Bitcoin retrace to $76,600, the Total Supply in Loss rose to 7.75 million BTC. After another decline to $73,000, the figure increased further to 8.33 million BTC. This suggests that around 580,000 BTC entered the loss territory due to the recent price fluctuations, indicating significant movement of supply within the $73,000 to $76,600 range. According to Glassnode, this situation adds to short-term sell pressure as holders evaluate their positions amidst the market correction.<\/p>\n
At present, the network shows an improved state compared to February, but the sustainability of this condition remains uncertain as market conditions evolve.<\/p>\n