Bitcoin Impact Index surges, signaling high market stress

Nearly half of Bitcoin's circulating supply is now trading at a loss, with the Bitcoin Impact Index surging to 57.4 to indicate a high level of market stress, according to a CoinDesk analysis. This marks the index's highest level since January and suggests the market has entered a high-impact state. The media outlet noted that long-term holders are sitting on unrealized losses for approximately 4.6 million BTC, the largest amount since 2023. Additionally, stablecoins have shifted from inflows to outflows, while ETFs and miners have pivoted from accumulation to selling.