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BTC $65,640.74 -0.90%
ETH $1,922.71 -0.37%
BNB $570.28 -0.18%
XRP $1.12 -0.44%
SOL $77.56 -0.61%
TRX $0.3283 -0.04%
DOGE $0.0725 -1.09%
ADA $0.1744 +0.40%
BCH $217.90 -3.17%
LINK $8.60 -1.14%
HYPE $58.87 -2.15%
AAVE $97.14 +0.90%
SUI $0.7604 -0.72%
XLM $0.1845 -3.67%
ZEC $514.19 -2.85%

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
Collection

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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