5.6 Million Bitcoin Held at a Loss by Long-Term Holders ⋆ ZyCrypto

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As Bitcoin slid below the long-term $60k price support, on-chain analytics show increasing stress on seasoned crypto investors and their “diamond hands”. According to the on-chain analytics firm Glassnode, as many as 5.6 million BTC, out of a total supply of 20.04 million BTC, are now at a loss.

This is the highest number of BTC held at a loss since 2019, and even the 2022 FTX market collapse didn’t result in such a big exodus of buyers from the market. Bitcoin is currently trading around $59.3k and appears increasingly bearish in the absence of retail buyers.

Glass node tweeted:

Glassnode reports that these Long-Term Holders (LTHs), i.e., bitcoin users who have held the crypto for more than 155 days, are now in deep-loss territory, and the number could increase over time, the analysis warns. Based on this source, it is clear that LTHs in loss often spike after a major bull market ends and peak the following year.

However, on the plus side, the total number of BTC held by these LTHs is around 15 million BTC, indicating that a major portion (37%) of these buyers are still in profit and that their “diamond hands” are still paying dividends despite the ongoing bloodbath. Together, they are the largest players in the Bitcoin market and account for 75% of the active supply.

Bitcoin Cycle Explained in Terms of LTH Losses

We witnessed a lopsided bull market in 2024-2025 when the number of LTHs in loss remained below 800k, but now that the bears have become untethered once again, the number is up near multi-year highs.

The same trend was observed after the 2020-2021 and 2016-2017 bull markets as well. The brief period of major decline in the number of LTHs in loss represents bull markets, and the graph shows that the cryptocurrency remains in a bearish squeeze for longer than bullish sprees.

The Future

While the LTHs are still largely in profit despite the major price downturns over the last three quarters, their resolve is expected to be tested in the coming months as bearish pressure continues to be felt.

BTC hit a 21-month low near $58,131 intraday on June 25 before partially recovering back above $59k earlier today. There is a growing sentiment that bulls will struggle to defend the $60k support level, potentially sending the premier cryptocurrency to $55k or even lower.

However, based on the previous trends, the bulls need to see off the 2026 calendar year on a relatively better note, and after that, things are expected to improve over the next couple of years, with 2028 being the year of the next halving.