Long

United

Bitcoin

<p>Bitcoin is wavering and taking a brutal shock: nearly 600 billion dollars are now unrealized losses. At 66,000 dollars, the market reveals fragility rarely seen at this scale. A significant part of the supply is under pressure, while some long-term investors are starting to give in. Between capitulation and demand exhaustion, this phase marks a turning point in the current market dynamics. It remains to be seen whether this tension signals a simple adjustment… or a deeper cycle change.</p>
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  <h2 class="in-brief--title" id="in-brief">In Brief</h2>
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   <li>Bitcoin is trading around 66,000 dollars and exposes the market to nearly 600 billion dollars of unrealized losses.</li>
   <li>A significant part of the supply, representing more than 44 %, is at a loss, revealing strong selling pressure.</li>
   <li>Long-term holders are starting to give in, marking a capitulation phase rarely seen outside stress periods.</li>
   <li>The market enters a redistribution dynamic, where assets move from struggling investors to new buyers.</li>
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<h2 id="a-market-under-pressure-unrealized-losses-and-capitulation">A Market Under Pressure: Unrealized Losses and Capitulation</h2>
<p>The bitcoin correction has taken significant magnitude. The price fell to around 66,928 dollars, a decline of 47 % since <a href="https://www.cointribune.com/en/bitcoin-surpasses-126000-without-being-overbought/" rel="noopener noreferrer nofollow">its all-time high of 126,000 dollars reached in October 2025</a>.</p>
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<p>This drop places a significant part of the market in difficulty, as <a href="https://studio.glassnode.com/charts/supply.LossSum?a=BTC&amp;c=usd&amp;s=1767214800&amp;u=1775119857&amp;zoom=ytd" rel="noopener noreferrer nofollow">the following data</a> shows :</p>
<ul>
 <li>About 8.8 million BTC are held at a loss ;</li>
 <li>Nearly 598.7 billion dollars in unrealized losses ;</li>
 <li>More than 44 % of the circulating supply affected.</li>
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<p>Glassnode <a href="https://cointelegraph.com/markets/bitcoin-holders-face-600b-unrealized-losses-btc-price-66k" rel="noopener noreferrer nofollow">highlights</a> the magnitude of this situation: <em>“historically, resolving an excess supply of this magnitude requires significant redistribution of bitcoins, from investors selling at a loss to new buyers ready to enter at lower prices”</em>.</p>
<p>At the same time, long-term holders are beginning to give in under pressure. An active capitulation phase is observed, with about 200 million dollars of realized losses, a signal rarely seen outside periods of intense stress.</p>
<p>These elements indicate an advanced phase of market tension. The combination of massive unrealized losses and realized sales by reputedly strong investors marks a regime shift. Such a configuration has historically preceded redistribution phases, where assets move from weakened hands to new entrants.</p>
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<h2 id="h-declining-demand-and-absent-investors">Declining Demand and Absent Investors</h2>
<p>Beyond losses, the data reveals a demand deterioration. Since the end of 2025, the market shows persistent contraction, with an estimated negative apparent demand of -1,623 BTC. Glassnode highlights that “the sustained decline in demand […] confirms that the market is still in a distribution phase.” In other words, outflows dominate, and new buyers struggle to absorb the supply.</p>
<p>This weakness is accompanied by notable disengagement from institutional and American investors. The Coinbase Premium remains negative, signaling a lack of appetite in the United States, while bitcoin-related investment products record 194 million dollars in net outflows over a week. Investors exposed via ETFs, with an average cost around 83,408 dollars, also face pressure, exacerbating the overall imbalance.</p>
<p>In this context, the market seems engaged in a classic redistribution phase of bear cycles. The absence of strong buyers combined with the gradual capitulation of long-standing holders could prolong this phase. However, the return of structured demand and investors capable of absorbing the supply appears as the necessary condition to stabilize the <a href="https://www.cointribune.com/en/crypto-markets/bitcoin-btc-en/" rel="noopener noreferrer nofollow">BTC price</a> and consider a new cycle.</p>

Bitcoin Correction Deepens As Long Term Holders Begin To Sell

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