Bitcoin Price Drop Pushes Over Half of Circulating Supply Into Losses
Bitcoin price drops to about $61,000, leaving more than 50% of circulating supply below purchase price; the 200-week moving average is widely breached.
The Bitcoin price slide accelerated this week, leaving a majority of existing coins trading below their holders’ purchase prices and underscoring growing strain across crypto markets. Data compiled by research firms and reported by Bloomberg show that as the token hovers near $61,000, losses have quickly accumulated across a broad swath of addresses. Market technicians noted a decisive break beneath the 200-week moving average, a long-term support measure that investors watch closely.
More Than Half of Bitcoin Supply Now “Underwater”
Recent estimates indicate that over 50% of circulating Bitcoin is currently trading below the price at which it was acquired.
This is the first time since late 2022 that a majority of coins are in loss, a stark reversal from roughly 30% in this position only a month ago, according to research cited by Bloomberg and K33 Research.
Price Near $61,000 as 200-Week Moving Average Breaks
Bitcoin has slid to approximately $61,000, reflecting a drop of roughly 50% from its all-time highs earlier in the market cycle.
Analysts highlighted that the token’s fall through the 200-week moving average — a benchmark used to gauge long-term trend health — signals a shift in market sentiment and may invite further technical selling.
Share of Holders in Loss Doubled in One Month
Market observers pointed out the speed of the deterioration: the proportion of coins held at a loss rose from around 30% to over half in the span of roughly four weeks.
The rapid expansion of unrealized losses suggests both newly purchased and longer-term holders are seeing their positions turn negative, compressing liquidity as some sellers seek exits while others hold for longer-term recovery.
Analysts Warn of Continued Pressure on Crypto Markets
Several analysts warned that breaking long-term technical supports could prolong volatility and pressure prices further before a durable recovery begins.
While some market participants see the current levels as a buying opportunity, others cautioned that macroeconomic factors, regulatory developments and liquidity conditions in crypto markets could delay a rebound.
Exchanges and Institutional Flows Come Into Focus
Trading venues and institutional desks reported elevated activity as investors rebalanced exposures in response to wider losses across the sector.
Higher realized losses can weigh on exchange order books and margin positions, increasing the risk of forced liquidations that amplify price swings in stressed conditions.
Implications for UAE Investors and Regional Markets
UAE-based investors and asset managers monitoring Bitcoin price movements may face heightened short-term portfolio volatility as losses expand across the holder base.
Financial advisers in the region emphasized that exposure sizing, risk management and clarity on investment time horizons are critical while markets digest the technical breach and broader macro headwinds.
Market participants are now parsing whether the current decline marks a consolidation before a renewed advance or the start of a more extended corrective phase. Observers note that historical recoveries have followed significant drawdowns, but timing and path vary widely and depend on macroeconomic shifts, regulatory signals and investor risk appetite. The present conditions — with an increasing share of coins underwater and long-term averages breached — make the near-term outlook uncertain for traders and long-term holders alike.