Bitcoin hodlers are sitting on a record 8 million BTC in unrealized losses, data shows

Bitcoin (BTC) is beating records this Christmas as price moves below $17,000 trigger unparalleled pain for hodlers.

Data from on-chain analytics firm Glassnode shows that both short-term and long-term investors are sitting on more losses than ever.

New and old, bitcoin hodlers are taking serious losses

BTC/USD has not recovered since the FTX meltdown took down the crypto markets.

The drop to levels last seen two years ago has created problems for hodlers who have bought in more recently – logically they maintain negative returns on their positions.

The pain runs deeper, however, and Glassnode is now showing the extent of the unrealized losses plaguing newcomers and veterans alike.

For both short-term holders (STHs) and long-term holders (LTHs), the current BTC price levels are a nightmare. STHs and LTHs are defined as entities hoarding incoming coins for less than and greater than 155 days, respectively.

According to the latest figures, as of Dec. 26, STH bitcoins held at a loss totaled 1,889,585 BTC, with the LTH balance standing at 6,057,858 BTC.

Bitcoin STH, LTH supply held on a losing chart. Source: Glassnode

This is a record in terms of the percentage of Bitcoin supply used by the tool, excluding BTC held by exchanges.

Bitcoin % LTH, STH log chart for unrealized losses. Source: Glassnode

As Cointelegraph previously reported, Hodler already controlled over 50% of the unrealized loss supply immediately after the FTX implosion.

There is room for maximum pain

What the future may hold for BTC price action remains a subject for scrutiny.

Related: Bitcoin exchange withdrawals drop to 7-month low as users forget FTX

While some metrics herald a 2022 bear market, analysts believe a new macro BTC price bottom is yet to come.

A popular target is $10,000 for BTC/USD, potentially due in the first quarter of 2023 as weeks of flat trading with little volatility come to an end in the new year.

However, in terms of retracement from all-time highs, Bitcoin still has some downside as it has yet to surpass the 80% level that has been the norm for previous bear markets.

Bitcoin price decline from all-time highs chart. Source: Glassnode

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