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
A certain Korean CEX is pushing for the reelection of its current CEO, who was previously penalized by regulators due to operational errors
South Korea's second-largest cryptocurrency exchange platform remains committed to supporting CEO Lee Jae-won's reelection, despite the platform facing controversy over a Bitcoin misdisbursement incident and regulatory penalties. Despite major flaws being exposed, the exchange has chosen to maintain operational stability rather than pursue management restructuring.
GateNews11m ago
Strategy Bitcoin holdings have a floating loss of 8.8%, approximately $5.08 billion
On March 22nd, Bitcoin's price declined 2.36% to $69,023, with Strategy's Bitcoin position experiencing an unrealized loss of 8.8%, approximately $5.08 billion. Previously, the price had briefly surpassed $76,000, during which the position was temporarily profitable. As of March 15th, Strategy held 761,068 BTC with a total cost basis of approximately $57.61 billion.
GateNews1h ago
Fractal model predicts Bitcoin will hit bottom in October 2026
Bitcoin shows positive recovery signals, improving market sentiment after a long phase of volatility. However, experts believe the current uptrend is short-term, with deeper correction risks ahead. According to Crypto Rover's fractal model, Bitcoin's price follows a four-year cycle influenced by halving events. The current cycle likely peaked in late 2025, with further declines expected before a potential bottom around 2026. Short-term price fluctuations can mislead investors, emphasizing the importance of understanding these cycles for long-term trends.
TapChiBitcoin1h ago
Bitcoin Mining Cost Rises to $88,000, Miners Lose Approximately $19,000 Per Coin
Rising energy prices and tensions in the Middle East have increased Bitcoin mining costs, with current production costs around $88,000 per BTC. Miners are losing nearly $19,000 per coin, representing an overall loss of 21%. Network mining difficulty has decreased by 7.8%, hashrate has declined, and the market may face selling pressure.
GateNews2h ago
Trump Issues 48-Hour Ultimatum to Iran, Bitcoin Drops Below 69,200 on Weekend
On March 22, following Trump's ultimatum to Iran, Bitcoin fell below $69,200, declining 2.2% over 24 hours. Market sentiment impacted mainstream crypto assets broadly, with declines across the board despite the Federal Reserve maintaining interest rates unchanged. War risk has made traders cautious. If Iran fails to restore Strait of Hormuz passage, the conflict could escalate, impacting global energy transportation.
GateNews2h ago
