Over 25% of Bitcoin Holders in Loss Amid Economic Concerns and Volatility
Recent analyses reveal that over a quarter of Bitcoin’s supply is underwater, driven by recent economic factors such as U.S.-China tariffs. Short-term Bitcoin holders, especially those who purchased within the last 155 days, face unrealized losses. Despite downtrends, large investors continue accumulating BTC, finding support near $74,000. Inflows into Bitcoin ETFs are negative, highlighting institutional caution. Although current investor sentiment is negative, it’s better than during the FTX collapse when over 56% were in loss. The market currently sees a correction of about 32% from its January peak, with conditions resembling past bear markets.
Bearish
The overwhelming presence of underwater holdings and correction trends indicate current bearish market conditions. Short-term holders are facing losses, and negative inflows into ETFs signal institutional hesitation. Such economic influences historically lead to cautious trading, preventing bullish momentum from gaining traction in the short run. Despite occasional support levels, the overall sentiment leans towards sustained caution until macroeconomic conditions stabilize.