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Record Number of Bitcoin in the Red Despite Long-Term Holder Confidence

Glassnode sees 10.83 million BTC in the red, while long-term holders are still holding 14.8 million BTC. That points to ongoing confidence despite the drop below $59,100.

By Mike Hesp
• 2 min read
Record Number of Bitcoin in the Red Despite Long-Term Holder Confidence

Key Takeaways

  • The amount of Bitcoin being held at a loss rose to a record 10.83 million BTC after a drop below $59,100.
  • Long-term holders own a record 14.8 million BTC, with 5.58 million BTC of that in the red.
  • About 37% of the Bitcoin supply held by long-term holders is underwater, which points to continued confidence in Bitcoin.

As the Bitcoin price recently fell below $59,100 (€52,100), the number of coins being held at a loss climbed to a record high of 10.83 million BTC. That comes from Glassnode data. Even with that increase, long-term holder confidence remains strong, with a record 14.8 million BTC in their hands.

Bitcoin Losses in Historical Context

Bitcoin has repeatedly tested the $60,000 (€52,900) level since February, with several brief dips below it. Four months ago, the amount of BTC in the red was 9.8 million, and by early June it had reached 10.78 million. The current level of about 10.5 million BTC at a loss lines up with the losses seen during earlier bear market bottoms in 2019, 2020, and 2022. That fits the broader pressure on the market, where Bitcoin also fell below $60,000 because of ongoing outflows and a stronger dollar.

Of the total number of coins in the red, 5.58 million BTC are held by long-term holders (LTHs), defined as investors who have held their coins for at least 155 days. That is the second-highest level ever, just below the March 2020 record, when more than 5.6 million BTC from this group were in the red.

Long-Term Holders Dominate the Market

Long-term holders now control about 14.8 million BTC, which is nearly 75% of the roughly 20 million coins in circulation. About 37% of that supply is underwater. Historically, these holders tend to accumulate during bear markets and keep holding, while they often start selling during bull markets.

This behavior from LTHs reflects strong conviction in Bitcoin's long-term value. Their relatively modest distribution in the current cycle could point to a shift in market dynamics, where they are less likely to sell their positions even with short-term price drops.

Why This Matters for European Crypto Investors

For European investors, the behavior of long-term holders can be a sign of confidence in the crypto market, even with volatility and temporary losses. The fact that a large share of the Bitcoin supply remains in the hands of this group may point to a certain level of stability in the market structure, which could matter when trying to gauge where the market goes next.

Disclaimer: This content is for informational purposes only and does not constitute financial, investment, legal, or tax advice. The information provided may be incomplete, inaccurate, or outdated and should not be relied upon as such. Nothing on this website should be considered a recommendation to buy, sell, or hold any cryptocurrency. Investing in crypto-assets involves risk of loss.