Recent findings indicate that approximately 40% of Bitcoin (BTC), 40% of Ether (ETH), and an alarming 75% of Solana (SOL) are currently held at a loss. This situation prompts concerns among investors regarding potential bear market indicators.

Key Insights:

• A large portion of the lost ETH and SOL is tied up and not liquid, with 40% of ETH and over 75% of SOL locked in staking or reserves.
• Although Bitcoin’s at-loss supply is considerable, the actual liquid supply is much lower when accounting for institutional holdings and lost BTC.

Loss Positions Reflect Liquid Supply

Bitcoin’s 35% loss rate mirrors levels noted when BTC last hovered around $27,000. However, figures indicate a substantial amount of Bitcoin’s supply is not readily available:

• Circulating Supply: 19,953,406 BTC
• Held by Institutions: 3,725,013 BTC (including ETFs and companies)
• Lost Bitcoin: Between 3,000,000 to 3,800,000 BTC (accounting for 15% to 19% of total supply)

Calculating these factors effectively removes around 33% of Bitcoin from accessible trading.

Ether’s situation necessitates a careful look. A significant 37% is in loss, but a large share is held in long-term stakes:

• Circulating Supply: 120,695,601 ETH
• Staked ETH: 35,681,209 ETH (≈29.6%)
• Held in ETFs and Reserves: Approximately 11M ETH combined

With this data, over 40% of all ETH is locked, reducing potential selling pressure.

Solana shows a stark difference as well, with 70% circulating SOL reported at a loss, but a vast majority sits staked or held in institutional products:

• Circulating Supply: 559,262,268 SOL
• Staked SOL: 411,395,790.5 SOL (≈73.6%)

High staking impacts price volatility, suggesting that the current observations of loss percentages may overstress potential sell pressure across these assets. Therefore, after adjusting for stakeholder strategies, the effective liquid supply at risk is significantly lower than data first implies.

For more insights, check out the related article.

This content is not investment advice. Conduct personal research before making any trading decisions.