Analysis: Bitcoin holders have suffered nearly $600 billion in unrealized losses, and retail investors continue to exert significant selling pressure.

Bitcoin traded at $66,450 on Thursday, with approximately 44% of its circulating supply in a loss-making state, accumulating a floating loss of about $59.87 billion (about 8.8 million BTC), weighing on market sentiment. Data shows that market demand remains weak. Glassnode points out that this level of supply excess is similar to that of the second quarter of 2022, when approximately 3 million BTC needed to be redistributed before the market recovered. Long-term holders (LTH) have begun selling below cost, with Bitcoin LTH having accumulated losses of $200 million, showing positive signs of a "sell-off capitulation." The current BTC price is also below the average cost of $83,408 for holders of the US spot Bitcoin ETF, further indicating investor pressure. The decline in market risk appetite is also reflected in outflows from investment products; in the week ending March 27, Bitcoin investment products saw net outflows of over $194 million. The Capriole Investment indicator shows apparent demand for BTC at -1,623 BTC. CryptoQuant indicates that retail selling still dominates, confirming the market is in a sustained distribution phase. The Coinbase premium index remains negative, suggesting that US investors have not yet entered the market on a large scale, consistent with the trend of shrinking on-chain demand. (Cointelegraph)