aggregated●·Crypto·

Bitcoin Holds $63K After Rally, but 50% of Supply Is Underwater

BTCETHBITOMSTRIBIT

Bitcoin is trading around $63,500 following a six-day rally, even as geopolitical tension and a tech sector pullback weigh on broader risk appetite. Spot Bitcoin ETFs logged net inflows on Monday, though analysts at Wintermute and Bitfinex flagged that underlying demand in those products remains weak. On-chain data from K33 shows roughly half of all circulating Bitcoin supply is currently held at a loss, a level historically associated with either capitulation or prolonged consolidation.

Why it matters

With 50% of supply underwater, Bitcoin is in a fragile technical position — holders sitting on losses are more likely to sell into any relief rally, creating a ceiling on price. ETF inflows provide a partial offset, but if those inflows are thin, institutional demand isn't strong enough to absorb that selling pressure. Crypto-exposed equities and ETFs like BITO and MSTR face the same headwind.

Watch next

Watch for the next weekly Bitcoin ETF flow data (typically reported each Tuesday/Wednesday). Also monitor the next U.S. CPI inflation report (~mid-month) and any FOMC commentary, as macro conditions are directly influencing crypto risk appetite.

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