46% of Bitcoin Supply Underwater, Nearing 2022 Bear Market Levels

Key Facts

1Around 46% of BTC supply (9.09m coins) is currently held at a loss as of early 2025.

2Current loss levels are nearing the concentrations seen during the 2022 bear market.

3This data follows the unwinding of the price rally experienced between 2024 and 2025.

Nearly half of the total Bitcoin supply is currently held at a loss as market conditions mirror the 2022 bear cycle. Recent data reveals that approximately 9.09 million BTC, or 46% of the circulating supply, is 'underwater' following the unwinding of the 2024-2025 price rally. This significant concentration of loss-making positions highlights the severity of the recent market correction and heightens investor anxiety. Analysts note that such high levels of supply in loss often signal market distress and could potentially lead to capitulation selling. However, historically, these extreme levels have also been associated with potential market bottoms in previous cycles. The current trend is impacting major crypto-related instruments, including spot ETFs like IBIT and FBTC, as well as mining stocks like MARA.