Bitcoin's Bearish Trend Worsens as 46% of Supply Falls Underwater

Bitcoin's recent price decline has had a profound impact on its market dynamics. According to data from CryptoQuant, approximately 9.09 million BTC, or 46% of the circulating supply, is currently trading at a loss.

The majority of these losses are attributed to long-term holders, with Checkonchain data showing that their unrealized losses currently sit around $140 billion.

This trend is consistent across both short-term and long-term holders, indicating a strong bearish sentiment in the market. As prices continue to fall, institutional investors such as Strategy (MSTR) are also feeling the pinch, with 67% of their Bitcoin stack currently underwater.