Bitcoin Shock Index Surges into High-Risk Zone as Nearly Half of BTC Holders Face Losses

CEX.IO uses its Bitcoin Shock Index to gauge market stress. Historical data show that BTC has suffered corrections of more than 25% after the index entered the high-shock zone. Nearly half of the Bitcoin in circulation is now worth less than its holders’ cost basis, suggesting that selling pressure has spread from short-term traders to long-term holders and that downside risk is rising.

CEX.IO’s latest report shows the Bitcoin Shock Index has climbed to 57.4, formally entering the high-shock warning zone, while about 47% of BTC is currently sitting on unrealized losses. Long-term holders are also selling at a loss at the fastest pace since 2023. Meanwhile, stablecoin flows have turned into net outflows, signaling that dip-buying demand and market liquidity are weakening in tandem.