BlockBeats News, February 21 — Cryptocurrency analyst Michaël van de Poppe stated, "Bitcoin’s recent pullback has caused a significant surge in realized losses, reaching a record high. This is one of the largest realized loss events in Bitcoin’s history, comparable to the crash during the 2018 bear market, the March 2020 COVID-19 pandemic plunge, and the peak losses during the Luna/FTX collapse in 2022.
Many holders are capitulating, either selling at a loss or transferring their BTC while in a loss. This extreme realization of losses typically indicates market panic selling and forced liquidations. Historically, such large-scale increases in realized losses often occur near or at the bottom of a market cycle, as they represent the complete clearing of weak hands and highly leveraged positions.
It is noteworthy that the Sharpe Ratio has fallen to its lowest level since the previous cycle bottom; the market is experiencing a large-scale capitulation event with extremely high realized losses; market sentiment has nearly hit rock bottom. The only difference this time is that Bitcoin has only declined about 50% from its all-time high, rather than 80%. The bottom is near."
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
From Bitcoin Miners to Payment Layers: Why Infrastructure Conversations Are Turning to Bitcoin Everlight
It’s no secret that bitcoin’s infrastructure has historically been centered around miners, full nodes, and base-layer settlement. This model has managed to prove itself as very durable. At the same time, though, when it comes to transactional throughput, there are some clear constraints. As the
CryptoPotato8m ago
BTC Long-Term Holders Selling at a Loss: Final Capitulation Phase May Be Here
Data shared by on-chain analyst Crypto Dan shows that Bitcoin (BTC) long-term holders are selling at a loss.
According to him, it means that the market may be approaching a phase where selling pressure gets exhausted, which could signal that a major cycle low is about to be reached.
What the Data
CryptoPotato26m ago
Bitcoin Hovering at $68K as Traders Predict Near-Term Decline
Bitcoin has each week stretched the same narrative: a narrowing price range after a dip to $60,000 in early February, with bulls and bears locked in a quiet tug-of-war. The last few days have seen BTC flicker between its daily highs and lows in a compact corridor, leaving traders debating whether th
CryptoBreaking49m ago
What's next after bitcoin's historic underperformance stretch against stocks
Bitcoin’s first-quarter slump capped an unusual run: nearly six months of underperformance against U.S. equities, a stretch that has no precedent.
“That’s never happened,” said Mark Connors, founder of Risk Dimensions, pointing to data showing bitcoin lagging stocks consistently since early
CoinDesk1h ago
Elevate Your BTC by Integrating Bitcoin Everlight Shards Early
For many years, earning Bitcoin has historically required complicated trading or expensive mining equipment that’s difficult for many people to run at home. This, in the context of users constantly looking for reliable passive income sources in the digital asset space, is important, especially as
CryptoPotato1h ago
XRP’s Key Rotation Feature Suddenly Looks Crucial as Google Confirms Bitcoin Can Be Broken in 9 Minutes
Google just dropped something that shook the entire crypto space. New research shows quantum computers may be far closer to breaking crypto security than anyone expected.
What used to sound like a distant risk has suddenly become urgent. The timeline to crack private keys has collapsed from
CaptainAltcoin1h ago
