Nearly half of all circulating bitcoin is underwater as long-term holders sell at a loss

Nearly half of all bitcoin is now trading at a loss, with the Bitcoin Impact Index surging to 57.4, indicating high stress levels. What to know : Nearly half of all bitcoin in circulation is now trading at a loss, with the Bitcoin Impact Index surging to 57.4, indicating "high impact" stress levels not seen since January. Long-term bitcoin holders who were selling at a profit a week ago are now underwater, with over 4.6 million BTC from these wallets now in the red and realized losses at their worst since 2023. Capital flows supporting the market have reversed, with stablecoin inflows turning to outflows and ETFs and miners moving from accumulation to selling, though holders have not yet rushed to deposit BTC on exchanges en masse.