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
Lombard and Humanity Protocol Lead Crypto Gains As Bitcoin Liquid Staking Explodes
The current technical development of the crypto market is marked by a major shift in the way cryptocurrencies are viewed and operated. This is evident in the top gainer lists, which increasingly show how protocols can be used for deep technological utilization rather than purely as speculative
BlockChainReporter14m ago
Data: 210 BTC transferred from an anonymous address, routed through an intermediary, then flowed into Cumberland DRW
ChainCatcher reports that, according to Arkham data, at 03:56, 210 BTC (worth approximately $14.92 million) was transferred from an anonymous address (starting with 168Bve...) to Cumberland DRW. Subsequently, Cumberland DRW transferred some of the BTC (57.42
GateNews15m ago
Data: In the past 24 hours, the entire network has liquidated $274 million, with long positions liquidated at $189 million and short positions at $85.9469 million.
ChainCatcher reports that, according to Coinglass data, the total liquidations across the entire network in the past 24 hours amounted to $274 million, with long positions liquidated at $189 million and short positions at $85.9469 million. Among these, Bitcoin long positions were liquidated at $72.5955 million, Bitcoin short positions at $31.1138 million, Ethereum long positions at $38.5414 million, and Ethereum short positions at $24.8499 million.
GateNews18m ago
Data: 838.89 BTC transferred from an anonymous address, routed through a relay, and flowed into Wintermute
ChainCatcher reports that, according to Arkham data, at 02:51, 838.89 BTC (worth approximately $50.26 million) was transferred from an anonymous address (starting with bc1qzudnxd...) to another anonymous address (starting with bc1qsxjg55...). Subsequently, this address transferred some BTC (130 coins) to Wintermute.
GateNews1h ago
