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
Bitcoin Sub-$50K Spurs Five Key Takeaways Amid Gold Bear Market
Bitcoin began the week facing renewed macro headwinds as risk sentiment wavered and traders weighed the possibility of further downside in a pattern that resembles January’s bear flag. BTC traded around the mid-$60,000s after a weekend of outsized liquidations and a weekly close that fell short of r
CryptoBreaking21m ago
Bitcoin finds stability at 2023 investor cost basis, echoing past cycle
Bitcoin support has recently aligned with the 2023 average realized price of approximately $63,700. This level has held during price fluctuations and mirrors past cycles. Current data shows newer cohorts are facing underwater positions, while the aggregate realized price indicates potential support at $54,000 if prices decline further.
CoinDesk29m ago
Bitcoin Reclaims $68.4K, Tests Critical $71.4K Resistance
_Bitcoin reclaimed $68.4K support, filled the CME gap at $70.1K, and now tests $71.4K resistance. Bears stay in control below that level._
Bitcoin bounced off the 68.4K level and climbed toward 71.4K. The move came after the CME futures gap at 70.1K got filled. Structure, though, still reads
LiveBTCNews40m ago
James Wynn shorts BTC again with 40x leverage
Blockbeat reports that on March 24, according to Onchain Lens monitoring, after being completely liquidated, James Wynn has once again opened a BTC short position with 40x leverage.
金色财经_41m ago
Maji Big Brother opened a 40x long position on BTC at an average price of $71,131
Gate News reports that on March 24, Hyperbot data shows that Brother Magji opened a 40x long position on BTC again, with an average price of $71,131 and a position value of $780,000. In addition, he also holds a 25x long position on ETH worth $11.547 million, with an unrealized profit of $60,000.
GateNews59m ago
