47% of Bitcoin's circulating supply is underwater, but panic selling has yet to emerge

CoinDesk reports that the Bitcoin Impact Index jumped 13 points last week to 57.4, pushing into the "high impact" pressure zone and marking its biggest weekly increase since January. Roughly 47% of Bitcoin's circulating supply is now below cost basis. Long-term holders—those holding for more than six months—were still in profit when Bitcoin traded above $70,000. As prices fell, more than 4.6 million BTC, about 30% of their total holdings, slipped into losses, the largest weekly drawdown for this cohort since 2023. CEX.IO said similar on-chain patterns appeared in mid-2018 and mid-2022, both followed by price declines of more than 25%. Flow data also show a reversal in stablecoin activity: average daily net inflows of about $250 million have turned into net outflows of $292 million. ETFs and miners have moved from net buyers to net sellers. Despite the pressure, there are still no signs of broad-based panic selling.