Bitcoin Correction Pushes 580,000 BTC Into Loss Territory

Data shows the Bitcoin loss supply has risen to 8.33 million BTC as the recently-bought tokens have been pushed underwater by the drawdown.

The metric works by going 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 last selling value was more than the latest spot price for any token, then that particular coin is assumed to be held at a loss right now.

Now, here is the chart shared by Glassnode that shows the trend in the 7-hour simple moving average (SMA) of the Bitcoin Total Supply in Loss over the last couple of years:

As displayed in the above graph, the Bitcoin Total Supply in Loss observed a decline during April and the first half of May as the cryptocurrency’s price enjoyed a recovery surge. At the asset’s top, the underwater supply shrank to levels below 7 million BTC. For comparison, the metric neared the 10 million mark following the crash in February.

Naturally, the fact that a notable 580,000 BTC went into loss just because of this new drawdown implies that the $73,000 to $76,600 range saw the change of hands of a significant amount of supply. “This cohort adds to near-term sell pressure as holders reassess their positions into the correction,” noted the analytics firm.

Currently, the network is still in a better state than it was in February, but it only remains to be seen whether that will be the case going forward.

At the time of writing, Bitcoin is trading around $73,200, down more than 5% over the past week.