What does it mean that a significant portion of Bitcoin is underwater?
Currently, approximately 8.9 million Bitcoin, which represents 45% of the total circulating supply, is trading at a loss. This situation denotes the highest response of underwater supply since January 2023. An increase in this metric can heighten the risk of capitulation, a phase where investors sell off assets, often at a loss, due to panic or fear of further declines.
How has Bitcoin's price movement affected the market?
In the last 24 hours, Bitcoin's value has decreased by about 10%, dropping below $65,500 after it fell from the $67,000 mark earlier. This decline not only impacts current investors but also influences market sentiment and potential future buying or selling behavior.
What are the implications of ETF outflows on Bitcoin?
In late January 2026, U.S. Bitcoin ETFs experienced notable net outflows — marking some of the most significant selling weeks in ETF history. Since its peak in October 2025, cumulative inflows have decreased by 12.4%. Such trends can have lasting implications, as they showcase investor sentiment and risk appetite in relation to cryptocurrencies.
The combination of rising underwater Bitcoin and decreasing ETF inflows could signal caution for investors. Understanding these metrics is critical for making informed decisions in the volatile cryptocurrency market.