📉One-third of Bitcoin supply now held at a loss - is this the reset before the next leg up?
Roughly 33% of Bitcoin’s supply is now underwater, levels last seen in September 2024, according to CryptoQuant. Historically, this kind of pain signals seller exhaustion, not the start of a full-on bear market.
Short-term holders are deep in the red - the STH SOPR has dropped to 0.99, meaning most coins moved onchain are being sold at a loss. These conditions have often marked market bottoms in past cycles, when weak hands exit and liquidity resets.
Technically, $BTC is still holding within its key demand zone between $98K–$103K. A breakdown below $98K could open the way to $93.5K, but holding this range may set the stage for a slow recovery toward year-end.
👉The takeaway: Pain in the short term, but structurally, the market looks ripe for a reset before the next accumulation phase.