Woofun AI reports that the total supply of Bitcoin held at a loss has climbed to an all-time high of 10.83 million BTC, surpassing levels recorded during previous bear market bottoms. This metric, which tracks coins where the current market price falls below the last on-chain movement price, indicates a significant expansion of unrealized losses across the network. The figure has risen sharply in recent months, jumping from 9.8 million BTC in February to exceed 10.7 million BTC this month. The last instance where the supply in loss breached 10.5 million BTC occurred near the cycle lows of 2019 and 2020.

A critical component of this surge involves long-term holders, defined as addresses retaining Bitcoin for at least 155 days. The volume of coins held at a loss by these entities has reached 5.58 million BTC, marking the second-largest amount on record. This figure is surpassed only by the March 2020 COVID-19 crash, when over 5.6 million BTC held by long-term holders were underwater. The concentration of losses among such high-conviction participants suggests that even the most steadfast investors are not immune to the current downturn.

Per Woofun AI, the surge in supply in loss typically reflects broad price declines and often serves as a contrarian indicator of market stress. Historically, extreme levels of unrealized loss have preceded market bottoms, although the precise timing of such reversals remains uncertain. While the metric signals deep bearish sentiment, it does not guarantee an immediate price recovery. Market rebounds frequently require extended periods for absorption and reaccumulation before a sustained upward trend can establish itself.