Bitcoin fell roughly 16% over the past week, testing the $60,000 support area amid a sharp contraction in both spot and futures buying. On‑chain metrics show demand at its lowest level this cycle and more than half of all BTC now sitting underwater,suggesting that capitulation may still be unfolding.

Spot demand contracts to 501,000 BTC, a cycle‑low

Data from CryptoQuant indicates that spot demand for Bitcoin has shrunk to about 501,000 BTC , the deepest dip observed in the current market cycle. The 30‑day spot demand metric fell by roughly 272,000 BTC, while futures demand dropped another 229,000 BTC, underscoring a pronounced retreat of new buying interest.

Underwater supply eclipses profitable holdings at 10.5 million BTC

More than half of the total Bitcoin supply now sits at a loss, with an estimated 10.5 milion BTC held underwater compared with only 9.8 million BTC that remain profitable. the crossover from profit‑making to loss‑bearing holders has historically coincided with market bottoms, but the usual accumulation signals are absent this time.

Loss‑driven transfers hit 53,800 BTC in 24 hours

In the last 24 hours, 53,800 BTC moved from private wallets to exchange addresses, and every one of those coins was previously underwater. As the report notes, inflows from profit‑making addresses fell to zero, marking the most lopsided loss‑driven short‑term holder transfer of the year, according to CryptoQuant.

Realized losss surge to $1.3 billion per day

Realized losses spiked to about $1.3 billion in a single day as Bitcoin slid toward $62,000, with long‑term holders responsible for $770 million, or 59% of the total loss.. This outflow of capital from holders who rode the late‑May rally reinforces the capitulation narrative.

What is the next support line? $55,000 under scrutiny

Analysts point to $55,000 as the next critical barrier, given the growing pool of underwater coins and the ongoing demand contraction.. The market’s ability to absorb selling pressure before that level will determine whether a bottom forms or further declines ensue.