The rapid increase in supply in the BTC market, which is in loss, is raising new concerns about market dynamics. According to the latest data shared by on-chain analysis platform Glassnode, approximately 44% of the circulating Bitcoin supply is currently in the loss zone.

While Bitcoin is trading at around $66,450, it has declined by approximately 47% from the peak of $126,000 recorded in October 2025. This decline has caused investors to face an unrealized loss of approximately $598.7 billion in total. Data shows that about 8.8 million BTC are in a loss position.

Glassnode assesses the current situation as similar to the market structure in the second quarter of 2022. According to the company, such a level of loss accumulation generally requires a transfer of assets from losing investors to new buyers entering the market at lower price levels.

Long-term investors holding for more than #GateSquareAprilPostingChallenge 155 days are experiencing daily realized losses of around $200 million. Glassnode interprets this as a confirmation of “active stop-loss sales.” According to analyses, a drop below $25 million in daily losses is considered a significant signal indicating that selling pressure has exhausted and often precedes the formation of market bottoms.

Meanwhile, the fact that Bitcoin’s spot price remains below the average cost level of $83,408 for US spot Bitcoin ETF investors is also noteworthy. This indicates increasing pressure on ETF investors. In fact, during the week ending March 27, net outflows of over $194 million were recorded from global Bitcoin investment products.

Weak demand also supports the market outlook. According to Capriole Investments data, the “visible demand” indicator for Bitcoin is measured at -1,623 BTC, showing that sellers are dominant in the market. Similarly, CryptoQuant states that the ongoing demand contraction since November 2025 confirms that the market is still in a “distribution phase.”

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