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BTC $64,351.80 +2.15%
ETH $1,905.80 +1.37%
BNB $605.35 +0.13%
XRP $1.00 +0.37%
SOL $75.88 +1.23%
TRX $0.3311 -0.04%
DOGE $0.0703 +0.89%
ADA $0.1739 -1.19%
BCH $204.45 +0.57%
LINK $9.51 +1.06%
HYPE $58.75 +2.11%
AAVE $88.17 +2.36%
SUI $0.6760 +0.32%
XLM $0.1577 +0.48%
ZEC $517.82 +6.06%

Analyst: The realized losses caused by Bitcoin's recent pullback have reached a historical high, which may be close to a temporary bottom

2026-02-21 19:05:10

Cryptocurrency analyst Michaël van de Poppe stated that the recent pullback in Bitcoin has led to a significant surge in realized losses, reaching an all-time high. This is one of the largest realized loss events in Bitcoin's history, comparable to the 2018 bear market crash, the March 2020 COVID-19 plunge, and the loss peaks during the 2022 Luna/FTX collapse.

A large number of holders are capitulating, either selling at a loss or transferring their BTC while in a losing position. Such extreme loss realization typically indicates panic selling in the market and passive liquidations. Historically, similar large-scale surges in realized losses often occur at or near cyclical bottoms, as this represents the complete clearing out of "weak hands" and high-leverage positions.

It is noteworthy that the Sharpe Ratio has dropped to its lowest level since the last bottom; the market is experiencing a massive capitulation event with extremely high realized losses; market sentiment has nearly reached a freezing point. The only difference this time is that Bitcoin is down about 50% from its historical high, rather than 80%. The bottom is near.

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