- The current market loss involves over 5.1M BTC, just like previous dips which blossomed into recoveries.
- Bitcoin market value rose to $81.9K as centralized exchange activity decreased which reflects sustained investor holding compared to speculative trading.
- Current supply-in-loss statistics follow 2024 consolidation patterns that could lead to cyclical bullish price recovery.
As Bitcoin’s price fluctuates at historic highs, new on-chain data shows that over a quarter of its circulating supply is currently underwater. Recent analytics reveal that 25.8% of all circulating Bitcoin supply currently carries negative value through total holdings worth 5,124,348 BTC. While at first glance this may suggest negative market sentiment, historical data from 2024 reveals similar dips that preceded periods of relative recovery.
Bitcoin Hits $81.9K as Holding Rises and Trading Volumes Dip
In the first quarter of 2025 Bitcoin has reached $81,928.06 while showing a 5.8% gain during the previous 24-hour period. Exchange trading volumes focused on centralized exchanges have witnessed substantial decline after hitting their peak of $10 billion on February 3rd to currently rest at an amount of $10 billion. The price momentum of Bitcoin has separated from trading activity as a result of changing behaviors toward spot purchases and long-term asset retention patterns.
Notably, the current supply in loss appears to track previous dips observed in 2024. On January 22nd BTC ownership reached 24.1% loss representing 4.72M BTC but this percentage grew to 22.4% or 5.13M BTC by July 6th then increased to 27.5% or 5.43M BTC on August 5th before reaching its highest point at 29.9% or 5.90M BTC on September 6th. These fluctuations typically aligned with sharp price retracements or consolidations, which were later followed by bullish corrections.
Chart Indicators and Historical Parallels
The supply-in-loss indicator, visualized against the BTC price, shows repetitive spikes in underwater holdings during market pullbacks. The current 25.8% level aligns with past support zones, suggesting a cyclical behavior rather than an anomaly. Each previous dip in supply in loss coincided with a local market bottom, hinting at possible consolidation phases rather than a full reversal.
Meanwhile, the overall price trend remains bullish, with recent highs touching above $83,000. The visual contrast between declining trading volumes and rising price suggests caution among retail investors, while long-term holders appear to be accumulating rather than distributing.
While current data may appear concerning to some, the on-chain behavior is consistent with typical bull market corrections. However, sustained low trading volume could imply reduced liquidity, potentially increasing price volatility in the near term.
