Key moments

• Bitcoin achieved a Wednesday uptick of 1.84%.
• The cryptocurrency continues to face considerable resistance at the $80,000 mark.
• According to data from CryptoQuant, 26% of the circulating Bitcoin supply is “underwater.”

Over a Quarter of Bitcoin Investors Face Losses Despite Recent Rise Above the $77,650 Price Point

Bitcoin managed to gain ground on Wednesday, registering a 1.84% increase to reach a trading price of $77,653. However, this upward movement has yet to provide the cryptocurrency with sufficient momentum to revisit the $80,000 threshold, a level it has struggled to reach following a significant price drop on Sunday. The digital asset’s inability to decisively break through this resistance underscores the persistent caution prevailing in the market.

Earlier in Wednesday’s trading session, Bitcoin had experienced further volatility, briefly dipping below the $75,000 mark as prevailing market anxieties continue to affect markets. Fears stemming from the recent implementation of President Trump’s tariffs and the anticipation of retaliatory measures from other nations have been particularly harmful to various asset classes.

Several factors are likely contributing to Bitcoin’s current predicament. The overarching market uncertainty, fueled by the potential economic ramifications of the newly enacted tariffs and the looming threat of a global trade war, is undoubtedly playing a significant role. Investors remain wary of risk assets in such an environment, leading to hesitancy in pushing Bitcoin decisively higher. The anticipation of further market volatility as the full impact of the tariffs and any subsequent retaliatory measures unfolds is also likely keeping a lid on bullish sentiment.

Furthermore, recent figures from CryptoQuant show an intriguing perspective on Bitcoin’s current market position. According to the data, 26% of Bitcoin’s circulating supply, equivalent to over 5.1M in BTC, is held at a loss. In other words, many investors’ current Bitcoin holdings are not worth as much as what the individuals purchased their coins for. These figures also resemble price depreciations observed last fall, when over 29% of the total Bitcoin supply was in the red. Earlier in the year, only a minuscule fraction of the supply was in such a position.