Bitcoin Market Cooling Off: Shift Towards Moderate Losses and Profits
Bitcoin (BTC) holder reshuffling in 2025 has seen a notable change in supply across various profit and loss bands, revealed the latest data from Glassnode.
Their Relative Supply by Profit and Loss metric shows key adjustments in the positioning of Bitcoin holders. Seems like Glassnode isn’t calling for a market capitulation just yet. This all points to an increasingly concentrated Bitcoin supply in the LLC—”Louie, Larry, Chica” middle ground, as far as P&L is concerned—where holders are neither at major losses nor extreme profits. That’s perhaps a more stable foundation for a potential Bitcoin bull market.
A Shift in Market Sentiment
The information points to an increasingly divergent distribution of Bitcoin’s supply among the various profit and loss brackets. One of the most pronounced developments in this new affinity for divergence is something we’re calling ‘Losslandia.’ In 2025, this is where we’re headed:
The supply of BTC distributed among holders of unrealized loss has grown.
We’ve seen a 7.75% increase in the portion of the supply held by entities nursing moderate losses (that’s 23.6% to 10% unrecovered).
Consequently, A) the population of Bitcoin holders seems to be growing, and B) the value of Bitcoin held by these underwater holders is, well, under water.
Even though these losses are significant, they do not rise to the level of being disastrous. That might give the impression that, even with the selling pressure we’re currently seeing, holders of Bitcoin aren’t yet throwing in the towel and liquidating their positions in the market. This even, continuous concentration of Bitcoin in the loss zone suggests to some observers that we’re seeing an increasing number of holders under moderate distress. And that, in turn, might be leading to an uptick in unfavorable sentiment regarding the future price of Bitcoin.
This increase in losses is occurring at a time when the price of Bitcoin has calmed down somewhat, after recent months in which it achieved some impressive highs. The uptick in loss-holding suggests that these holders may be myopically attempting to avoid realizing a loss and are hanging onto their Bitcoin for dear life—in hopes of a rebound. But, of course, this could also be viewed as an immediate-term negative for market sentiment because it looks like a significant portion of the market is aiming to work through a pretty substantial psychological hurdle.
Declining High-Profit Holdings
Conversely, holdings of Bitcoin in the higher profit bands have decreased. The supply held in the 40%–60% profit range is down 3.57% in 2025. This drop could reflect several factors, such as profit-taking or price corrections that have brought coins closer to the breakeven point. In any case, the trend is for many holders who have enjoyed significant profits in recent months to not only continue holding that Bitcoin but also to potentially enlarge the quantities they hold over time.
More $BTC is now held at moderate losses, while supply at higher profit margins has declined. YTD, there's been a notable reshuffling of holdings across profit and loss bands. In short:
🔺Losses are increasing, but they're not severe.
🔻High-profit holdings are thinning.… pic.twitter.com/V8sTo12OWk— glassnode (@glassnode) March 25, 2025
Long-term holders are taking a more cautious approach these days. We know this because there are now fewer high-profit Bitcoin holdings. In recent months, anytime the price of Bitcoin has pulled back, the holders who were sitting on big profits seem to have decided it was time to trim those holdings. They sold into the profit-taking space, which is now seemingly vacated. The space is now vacated because we see the profits basically moving down the line toward more secure conditions. So, what’s happening here? Is it that Bitcoin’s price action is causing some holders to take more secure measures with the holdings they still have? Is it that long-term holders are becoming more tactical?
Although it is perfectly natural to respond to market fluctuations by taking profits, this too implies that Bitcoin’s market is now in a more conservative phase. Gone may be the days of meteoric rises and dramatic gains, with holders of the digital coin now apparently more mindful of the risks involved. This mindset shift could contribute to slower price movements in the coming months—if, in fact, those coming months see any kind of upward price movement at all.
Growing Concentration in the Middle
The most prominent trend that has emerged in 2025, however, is the growing concentration of Bitcoin supply in the middle ranges of profit. Supply held at a 20% to 40% profit range has risen by 3.45%, indicating that Bitcoin is accumulating in this moderate profit zone. This shift could be seen as a sign of accumulation at lower levels, as many holders appear to be taking advantage of the price pullbacks to purchase Bitcoin at more favorable prices.
The concentration of supply in the middle profit bands suggests that Bitcoin holders are adjusting their positions in response to price fluctuations, with a tendency to acquire coins when the price is more attractive. It also points to a steady accumulation of Bitcoin by investors who aren’t looking for the extreme highs of the past but are instead positioning themselves for more sustainable growth over time.
This middle-of-the-road concentration might also suggest a stable situation in the Bitcoin market. Large-scale liquidations that swing either way—that is, toward extreme profits or extreme losses—seem to be absent. This might suggest a market in which trade sentiment is balanced enough that traders aren’t inclined to set off a buying or selling panic. Moreover, it could suggest that holders are content to hold and, in some cases, to accumulate Bitcoin at what seems to be reasonable price levels.
Conclusion: A Cooling Market with Steady Activity
To sum up, the Bitcoin supply reorganization across various profit and loss levels shows how market sentiment is changing. Bitcoin held at moderate losses is climbing—but that’s not causing a retreat to the panic sell side. Instead, it looks like holders are in wait-and-see mode, possibly hoping for a rebound. The decline in high-profit holdings is a profit-taking signal, with some holders presumably parking their just-locked-in gains in cash. Meanwhile, the appearance of concentration in the middle profit zones suggests that space between the high-profit and the low-profit bands is getting filled. So the supply side is looking like an accumulation story—at more sensible price levels.
Generally, Bitcoin’s market is settling down and not in a state of capitulation. The market is moving through the transitional phase and holders are adjusting in what seems to be a more balanced way and are just chilling and waiting to see what Bitcoin will do. The price seemed to respond to the overall market with continued downside, but it is more stable now and has been moving back and forth in the $27,000 to $29,000 price range.
Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.
