Half of $BTC Is Now Underwater and Whales Are Selling Swimsuits 😬

Roughly half of Bitcoin's circulating supply is now held at a loss, with on-chain data showing 10.56 million BTC underwater and surpassing the prior peak of 10.47 million BTC. The figure underscores the level of unrealized losses accumulated across the market as $BTC continues to consolidate near $60,000, a level it has traded around for nearly two weeks.

Separate on-chain observations have identified a large holder who sold 800 BTC at roughly $62,000, locking in an estimated $35 million loss. The wallet had acquired the position near November 2024's peak of approximately $107,000 per coin and held through seven months of downside before exiting. Analysts tracking capitulation patterns note that sales of this scale by long-term holders can be read as a stress signal, though the data does not by itself indicate a broader directional move.

Options markets have also seen a sharp shift in positioning. Bitcoin Options Open Interest climbed to a monthly high of $36 billion, with the largest single-day increase recorded on June 18. Deribit traders have been loading up on short-dated put contracts, with notable open interest at strike prices of $60,000 in early July, $55,000 by July 10, and as low as $52,000 by the end of the month. The skew toward put options indicates that participants are either hedging existing exposure or positioning for further downside, and is consistent with the rising share of supply held at a loss.