Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
Bitcoin Slide Leaves Over 70% of Active capital in Losses as Sentiment Collapses

Bitcoin Slide Leaves Over 70% of Active capital in Losses as Sentiment Collapses

BeInCryptoBeInCrypto2025/11/22 02:21
By:Oluwapelumi Adejumo

Social media data from shows that retail sentiment for Bitcoin has sunk to its lowest level since December 2023, with capitulation and panic selling reaching two-year highs.

Bitcoin’s recent drop toward $80,000 has driven most active capital in the asset into losses, signaling a shift in market conditions for the world’s largest cryptocurrency.

Bitcoin has erased nearly 35% from its October peak of about $126,000 after sinking to a seven-month low. As a result, it is now generating one of the largest waves of unrealized losses this cycle.

Over 70% of US Dollars Invested in Bitcoin is in Loss

According to data from on-chain analytics firm Checkonchain, the price rout has forced more than 70% of the capital allocated to Bitcoin underwater.

Bitcoin analyst James Check explains that 71.2% of the network’s realized capitalization carries a cost basis of at least $86,500. This metric prices each coin in the circulating supply at the value it last moved on-chain.

This chart shows the USD value of every coin in the Bitcoin supply priced when it last transacted onchain.Think of this as our collective invested cost basis.Over 70% of the USD invested in Bitcoin is now underwater.

— _Checkmate 🟠🔑⚡☢️🛢️ (@_Checkmatey_) November 21, 2025

Thus, it effectively represents the aggregate entry price for the market’s active investors.

So, with Bitcoin recently tumbling below that critical waterline, a flood of buyers who entered during the late-2024 and early-2025 rallies now face mounting losses. Many of these investors are effectively trapped in positions that no longer break even.

This heavy concentration of volume near the highs indicates that short-term holders are experiencing acute stress. It is forcing their Net Unrealized Profit and Loss metrics to collapse to cycle lows.

Bitcoin Market Sentiment Reaches 2-Year Low

Meanwhile, this fracture in the broader market structure is further corroborated by Glassnode data.

The firm’s Relative Unrealized Loss indicator, which tracks the dollar value of coins held below their acquisition price relative to total market capitalization, has spiked to 8.5%. In a typical, healthy bull market, this metric generally remains below 5%.

The Relative Unrealized Loss in the market is now trading at 8.5%. 📉

— glassnode (@glassnode) November 21, 2025

So, the current breach suggests that the drawdown represents a significant “market reset” of the asset’s ownership base rather than a standard volatility correction.

While prices have staged a modest recovery to the $84,543 level at press time, the psychological damage to the retail sector appears severe.

Social media sentiment has cratered to its lowest point since December 2023, according to blockchain analytics platform Santiment.

The firm said its analysis of social media commentary across X, Reddit, and Telegram shows that retail traders are capitulating and panic-selling at levels unseen in two years.

Bitcoin Slide Leaves Over 70% of Active capital in Losses as Sentiment Collapses image 0Bitcoin Social Media Sentiment. Source: Santiment

Historically, such extreme levels of bearishness often act as a contrarian signal, suggesting that the market may be clearing out weak hands in preparation for a local bottom.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

XRP News Today: XRP ETF Momentum Contrasts with Declining Network Engagement

- XRP's ETF inflows exceed $420M daily, contrasting with 50% lower on-chain payment volume and declining transaction counts. - Technical indicators show fragile bullish momentum below $2.28, while RSI rejection and EMA positioning highlight bearish pressure. - Fed's 81% rate cut probability and ETF-driven demand could push XRP toward $3, but network activity weakness raises sustainability doubts. - MACD buy signals clash with declining 50-day EMA ($2.38) and structural vulnerabilities in ETF-dependent pric

Bitget-RWA2025/11/28 19:38
XRP News Today: XRP ETF Momentum Contrasts with Declining Network Engagement

Ethereum News Update: North Korean Cybercriminals' Cross-Chain Money Laundering Reveals Vulnerabilities in Crypto Security

- North Korean hackers suspected in $36.8M Upbit breach used multi-chain laundering across Solana and Ethereum to obscure stolen assets. - Upbit froze transactions, pledged user reimbursements, and faces regulatory fines for delayed reporting amid a $10.3B merger with Naver. - Attack mirrors 2019 Lazarus tactics, exposing crypto industry vulnerabilities as stolen funds were rapidly converted into $1.6M via 185 wallets. - Market volatility surged with altcoin price spikes, while regulators intensify scrutin

Bitget-RWA2025/11/28 19:38
Ethereum News Update: North Korean Cybercriminals' Cross-Chain Money Laundering Reveals Vulnerabilities in Crypto Security

Blazpay's 24-Hour Timer: AI-Powered Token Set to Dominate the 2025 Cryptocurrency Surge

- Blazpay's Phase 4 presale enters final 24 hours with $1.52M raised and 78.6% tokens sold, outpacing initial sales projections. - Analysts highlight 3.4x-5x return potential for early buyers, citing AI-powered trading tools, multichain infrastructure, and audit-backed security protocols. - Investors can purchase BLAZ tokens via USDT/ETH/BNB through the official portal, with referral incentives and gamified rewards boosting community engagement. - Project emphasizes real-world utility including automated t

Bitget-RWA2025/11/28 19:38
Blazpay's 24-Hour Timer: AI-Powered Token Set to Dominate the 2025 Cryptocurrency Surge

Bitcoin News Update: MSCI Regulation Ignites Tension Between Bitcoin and Major Traditional Financial Institutions

- MSCI's proposed rule to exclude firms with over 50% crypto assets risks triggering $8.8B in forced Bitcoin sell-offs from index-tracking funds by 2026. - JPMorgan's analysis highlights existential threats for crypto-focused companies like Strategy (MSTR), which could face $2.8B in passive outflows alone. - Critics accuse MSCI and JPMorgan of bias, citing the bank's anti-crypto stance and the "binary cliff effect" of the 50% threshold destabilizing market eligibility. - The debate reflects a clash between

Bitget-RWA2025/11/28 19:38
Bitcoin News Update: MSCI Regulation Ignites Tension Between Bitcoin and Major Traditional Financial Institutions