25% of Bitcoin Supply Is Underwater: Glassnode - Unchained

Onchain analytics firm Glassnode suggested that current bitcoin market structure bears uncharacteristic similarities to the Q1 2022 setup – a time that defined the early phase of a crypto winter.

Glassnode noted that over 25% of bitcoin’s supply is “underwater” or unprofitable, while demand is weakening across ETFs, spot, and futures.

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“Over the past two weeks, Bitcoin has dropped toward and found support near a critical valuation anchor known as the True Market Mean — the cost basis of all non-dormant coins, excluding miners,” said Glassnode.

“This level often marks the dividing line between a mild bearish phase and a deep bear market.”

The timing of the research report coincided with bitcoin reclaiming the $93,400 mark, recovering from a large-scale selloff earlier in the week

But according to Glassnode, bitcoin holding within the $96,000 to $106,000 range will be critical for stabilizing market structure and reducing downside vulnerability into year-end.