Key Points
- Bitcoin’s supply in loss and daily on-chain transaction volume in profit provide insights into investor behavior and market sentiment.
- The BTC liquidation heatmap on Binance indicates market stability and the influence of leveraged positions.
In the early part of 2022, Bitcoin’s supply in loss hit a high of 21.9% as the cryptocurrency’s price fell below $20K. This indicated a strong selling pressure during a bearish phase.
Throughout 2022 and 2023, as Bitcoin’s price fluctuated between $20K and $30K, the supply in loss stabilized between 10–15%. This showed a reduced but ongoing selling pressure.
Decreasing Selling Pressure and Rising Prices
By the middle of 2024, Bitcoin’s price surged towards $70K, and the supply in loss steadily decreased. By the beginning of 2025, when the price reached $94K, the supply in loss fell below 5%.
This downward trend indicated a decrease in selling pressure as fewer holders were at a loss. The correlation between a shrinking supply in loss and rising prices suggested increasing investor confidence.
As more market participants held onto their assets in anticipation of further gains, the likelihood of panic selling decreased. This reinforced a bullish outlook for 2025.
Bitcoin’s Daily On-Chain Transaction Volume
Bitcoin’s daily on-chain transaction volume in profit also provides insights into investor behavior during price movements. In early 2024, when Bitcoin was trading around $60K, profit-taking remained low, suggesting a cautious market sentiment.
As Bitcoin’s price climbed to $87K by the end of 2024, the transaction volume in profit spiked. This reflected increased profit realization as investors capitalized on the rally.
However, by early 2025, as Bitcoin corrected to $77K, the transaction volume in profit declined. This implied that fewer holders were actively selling, aligning with the decreasing supply in loss.
Investors in profit chose selective profit-taking rather than mass liquidation, contributing to price stability. This trend reinforced the broader market sentiment that confidence in Bitcoin’s long-term value remained strong despite short-term corrections.
Liquidation Heatmap and Market Stability
The BTC liquidation heatmap on Binance provides insights into leveraged positions and market stability. High liquidation zones around $60K–$70K in mid-2024 indicated excessive leverage, leading to forced liquidations during price volatility.
As Bitcoin rallied to $87K by late 2024, liquidation levels decreased, suggesting a more balanced leverage usage among traders. By early 2025, with Bitcoin consolidating around $77K, liquidation activity remained low.
This aligned with the declining supply in loss, as fewer underwater positions reduced forced liquidations. Lower liquidation risks contributed to a more stable market, allowing Bitcoin’s price action to be driven by organic demand rather than excessive leverage.
This environment positioned Bitcoin for potential continued growth in 2025, with reduced downside risk from forced selling. As Bitcoin adoption grows and institutional interest strengthens, market participants may see continued price appreciation, driven by long-term confidence rather than short-term speculation.
