In brief – Bitcoin, Ethereum, and XRP investors have suffered heavy losses as the crypto market tumbles, with over 8 million BTC underwater. – During these capitulation phases, “future winners separate themselves from the field,” Decrypt was told. – Sentiment remains bearish…
th Myriad users giving Bitcoin’s $55,000 retest a 75% chance. The crypto market’s 2026 drawdown, driven by Bitcoin’s lackluster performance, has weighed heavily on most altcoins—borne out by on-chain data
Nearly half of Bitcoin’s circulating supply was in profit at the cycle peak. That has dropped sharply, with over 8 million BTC sitting underwater, “highlighting the scale of the recent market reset,” Glassnode posted Tuesday. A similar conclusion can be drawn for Ethereum, the second-largest cryptocurrency by market capitalization. “The share of Ethereum supply sitting at more than 3x profit has dropped to 11%, the lowest reading since February 2017,” Glassnode wrote.
Compared to the last two cycles, that cohort exceeded 50% of the total supply at peak. “This time, that threshold was never reached. Ethereum’s profitability profile has fundamentally compressed relative to prior cycles,” the on-chain analytics firm said. Both Bitcoin and Ethereum are down roughly 31% and 46% in 2026, according to CoinGecko data.