23.7% of Bitcoin Supply Currently at a Loss, Says Glassnode

On-chain analytics platform Glassnode reports that the Bitcoin supply at a loss has risen to 6.7 million BTC, representing 23.7% of the circulating supply. This is the highest level observed in this cycle.

10.2% of the loss-bearing supply is held by long-term holders and 13.5% by short-term holders.
The current loss levels mirror early phases of prior cycles, often preceding more bearish conditions and investor capitulation.
Bitcoin prices have dropped to 2024 levels, erasing year-to-date gains, with a dense supply cluster from $93,000 to $120,000 causing overhead sell pressure.
Failure to reclaim key thresholds, like the Short-Term Holder Cost Basis at $101,500, suggests potential for further downside.

Glassnode also highlights unstable spot demand in the Bitcoin market:

Cumulative Volume Delta (CVD) shows sporadic buy-side activity but lacks sustained accumulation, particularly during price pullbacks.
Coinbase's CVD indicates steadier US investor participation, while Binance flows remain inconsistent.
Lack of consistent accumulation means Bitcoin's price depends more on derivatives market activity than organic spot demand.

Currently, Bitcoin is trading around $86,800, up in the last 24 hours according to CoinMarketCap.