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BTC $78,021.50 +2.14%
ETH $2,386.98 +2.63%
BNB $642.14 +0.85%
XRP $1.45 +0.61%
SOL $88.33 +2.80%
TRX $0.3328 +1.25%
DOGE $0.0975 +1.97%
ADA $0.2550 +1.76%
BCH $470.19 +5.88%
LINK $9.51 +0.96%
HYPE $40.51 -0.74%
AAVE $93.61 -0.60%
SUI $0.9677 +1.05%
XLM $0.1797 -0.50%
ZEC $317.58 -0.04%

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
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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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