Bitcoin Held at a Loss Surpasses Profitable Holdings
More bitcoin is now held at a loss than at a profit, marking a significant milestone, according to CoinDesk. This shift reflects a broader correction, with approximately 10.83 million BTC held at a loss compared to 9.22 million profitable BTC.
Bitcoin holders are currently facing an unprecedented situation where over 10.83 million BTC is held at a loss, meaning these holders purchased their bitcoin at prices higher than the current market rate. In contrast, only about 9.22 million BTC remains profitable, based on data from Glassnode. This marks the first instance since the beginning of the current cycle that loss-making supply has eclipsed profitable supply.
This shift highlights the significant price correction from bitcoin's peak at $109,000 in January, and historically, such crossovers have occurred during times of peak financial stress and capitulation among newer investors. As prices fall, it is common for coins to transition from weaker hands to stronger hands, as long-term holders are less likely to sell during downturns.
In conjunction with this trend, there has been a notable increase in long-term holder accumulation and growing wallet-cohort balances across various size brackets. As of a recent report, bitcoin trades at approximately $61,361, showing a slight increase of 0.7% on the day and 2.5% for the week, although it remains around 44% below its all-time high.
Whether this crossover signifies a market bottom remains uncertain. Previous instances in 2018-19 and 2022 have indicated that similar conditions often precede extended periods of price stabilization before any substantial recovery occurs. The resolution of this current situation may depend on external factors, such as the return of investment flows into exchange-traded funds (ETFs) and improving macroeconomic conditions, which can help catalyze a price rebound.
Summary based on original reporting by Shaurya Malwa at CoinDesk, originally published Jul 3, 2026. SolanaWire does not republish source content.
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