Crypto Unrealized Losses Jump to $350B; Bitcoin Bears $85B as Liquidity Tightens

On-chain analytics from Glassnode show total unrealized losses across the crypto market surged to roughly $350 billion following a bearish drawdown since October, with Bitcoin accounting for about $85 billion of those paper losses. The unrealized loss metric aggregates coins last moved at prices above current spot, signalling large pockets of holders sitting on losses. Glassnode warned that shrinking exchange liquidity and lower trading volumes are likely to increase volatility and downside risk. Supplementary data from Sentora noted divergent exchange netflows this week: Bitcoin saw net withdrawals near $1.34 billion while Ethereum recorded net inflows of about $1.03 billion — a mix that can heighten selling pressure for BTC and temporarily support ETH. Recent price action saw BTC fail to hold above $92,000 and trade near $90,000 at publication. Market commentators and CryptoQuant analysts observed that elevated unrealized losses often form in later correction stages and that short-term holders are bearing outsized losses in 2025. For traders, the combination of high unrealized losses and weak liquidity raises the risk of forced selling and cascade events in drawdowns, while also creating potential mean-reversion or accumulation opportunities for risk-tolerant buyers. Key takeaways: monitor exchange netflows, liquidity metrics and short-term holder concentration for increased tail-risk and potential entry points.