Data shows that Bitcoin’s supply loss reached 8.33 million BTC as recently purchased tokens were pushed underwater by the withdrawal.
Total Loss Bitcoin Supply Increased Recently
In a new article on X, on-chain analytics company Glassnode talked about the latest trend in Bitcoin’s total supply loss. This indicator measures, as the name suggests, the total amount of BTC currently held with a net unrealized loss.
The metric works by looking through the transaction history of each token in circulation to determine the price at which it was last involved in a transfer on the blockchain. If this latest sale value was higher than the last spot price of a token, then that particular coin is assumed to be held at a loss at the current time.
The total supply loss counts all tokens meeting this condition. A peer indicator called Total Supply in Profit supports supply of the opposite type (i.e. parts whose base cost is lower than the current price).
Now here is the chart shared by Glassnode that shows the trend of the 7-hour simple moving average (SMA) of Bitcoin’s total supply in loss over the last two years:
The 7-hour SMA value of the metric seems to have been going up in recent weeks | Source: Glassnode on X
As seen in the chart above, the total supply of Bitcoin in loss observed a decline in April and the first half of May as the price of the cryptocurrency saw a strong recovery. At the asset’s peak, underwater supply fell to levels below 7 million BTC. For comparison, the figure approached the 10 million mark after the February crash.
However, some of the supply that had escaped loss territory is now back in the red due to the price decline that Bitcoin faced during the second half of May. The cryptocurrency’s return to $76,600 had already brought the total supply loss to a value of 7.75 million BTC, and now the latest drop to $73,000 means the indicator has increased further to 8.33 million BTC.
Naturally, the fact that a notable loss of 580,000 BTC was lost simply because of this new drawdown implies that the $73,000 to $76,600 range saw a significant amount of supply change hands. “This cohort adds to near-term selling pressure as holders reassess their positions in anticipation of the correction,” the analytics firm noted.
Currently, the network is still in a better condition than in February, but it only remains to be seen whether this will be the case in the future.
BTC Price
At the time of writing, Bitcoin is trading around $73,200, down more than 5% over the past week.
Looks like the price of the coin has plunged recently | Source: BTCUSDT on TradingView
Featured image of Dall-E, chart from TradingView.com
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