Bitcoin ‘UTXOs in Loss’ at Record Highs Amid Price Sell-Off

A key metric is hovering at record highs, suggesting investors are likely holding bitcoins even when deep in the red. 

The number of unspent transaction outputs (UTXOs) in loss rose to all-time highs above $45 million on Dec. 17, representing a 578 percent rise from the July 1 figure of $6.69 million, according to on-chain market intelligence firm Glassnode.

A UTXO is basically leftover bitcoins after a transaction. It’s a little bit like getting back change when paying for something in cash using large bills.  

For example, Alice has 10 bitcoins and needs to pay three BTC  to Bob, a merchant. Alice can’t just send out three BTC and hold the rest. Instead, she will have to spend 10 BTC, of which three BTC will be sent to Bob and the remaining seven BTC will be sent back to the address she controls. These seven bitcoins are UTXOs and can be used as inputs in another transaction.

A loss-making UTXO is the one whose price at the time it was…