MILESTONE | Over Half of All Bitcoins in Circulation in Unrealized Loss, the Highest on Record

Bitcoin’s brutal 2026 downturn has pushed a record 10.83 million BTC into unrealized losses, underscoring the scale of investor pain as the cryptocurrency struggles to hold above key long-term support levels.

The figure, tracked by on-chain analytics firm, Glassnode, marks the highest amount of Bitcoin supply ever held below its acquisition price.

The milestone comes after Bitcoin shed roughly 50% of its value from its October 2025 all-time high near $126,000 extending one of the sharpest drawdowns of the current cycle.

Earlier this year, Glassnode data showed more than 400,000 BTC being accumulated between $60,000 and $70,000 as investors attempted to buy the dip. Many of those positions are now underwater as prices hover near the low-$60,000 range.

The latest reading means more than half of Bitcoin’s circulating supply is currently sitting at a loss, a condition historically associated with the later stages of bear markets. Previous instances occurred during

• the 2015 downturn,
• the 2018-19 crypto winter,
• the March 2020 pandemic crash and
• the 2022 bear market.

While those periods ultimately preceded major recoveries, the duration of investor pain varied widely.

The record loss-bearing supply highlights how rapidly sentiment has deteriorated across the market. Data from late 2025 already showed short-term holders carrying the largest underwater positions since the collapse of FTX, suggesting recent buyers have borne the brunt of the selloff.

Yet the on-chain picture is not entirely bearish.

Glassnode data from earlier in June 2026 indicated investors accumulated more than 250,000 BTC between $59,000 and $67,000 with buying activity spanning both retail traders and larger holders. The firm’s accumulation metrics reached their strongest level of the current drawdown signaling that some investors view current prices as an opportunity rather than a warning.

Market participants remain divided on whether the surge in supply held at a loss marks capitulation or merely another stage in Bitcoin’s correction. Some analysts argue that the metric has historically coincided with major cycle bottoms while others warn that macro-economic headwinds and a stronger U.S. dollar could still push Bitcoin toward the mid-$50,000 range before a durable recovery emerges.

For now, the record 10.83 million BTC sitting underwater serves as a stark reminder that Bitcoin’s 2026 bear market has evolved from a routine correction into a broad-based test of investor conviction.

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