Bitcoin’s percent unrealized loss metric dropped to 35.2% as of August 2, falling below the 40% threshold that on-chain analysts consider the “deep-stress band.” It’s the first time the reading has dipped below that line since late June, when it peaked at 42.2%.
What the numbers actually say
The metric’s recent trajectory tells a clear story. In late June, unrealized losses hit 42.2%, pushing the market firmly into deep-stress territory. By July 21, the reading had fallen to 30.4% as prices stabilized. Then it crept back up to 35.2% by the start of August.
Readings above 60% have historically aligned with full-blown capitulation events. At 35.2%, the market is nowhere near capitulation.
Why one-third underwater matters
