10.5 Million Bitcoin in Loss Amid Market Capitulation

According to KuCoin, there are currently 10.5 million Bitcoin in loss, which is an extremely bearish indicator. However, this has been a characteristic of later bear market phases historically. The Supply in Loss indicator measures how many BTC are trading below their on-chain cost basis.

The last time we saw such extreme levels was during the 2018 and 2020 COVID crashes, as well as the 2022 bear market. These periods all shared a common denominator: a significant portion of the market had already capitulated.

This does not necessarily mean that the bottom has been reached, but rather that a substantial portion of the pain has already been absorbed by the market. Convicted long-term investors are accumulating coins, and this is laying the groundwork for the next cycle.