Nearly half of Bitcoin supply trading at a loss

A significant portion of Bitcoin is now trading below its purchase price, with nearly half of the circulating supply underwater. The Bitcoin Impact Index has surged to 57.4, indicating high market stress not seen since January. Long-term holders, who were previously selling at a profit, are now realizing substantial losses, with over 4.6 million BTC from these wallets in the red. This situation marks the worst realized losses since 2023, signaling a potential downturn. Capital flows have reversed, with stablecoin inflows turning negative and ETFs and miners shifting from accumulation to selling.