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BTC $79,965.25 +0.33%
ETH $2,502.36 +1.80%
BNB $758.07 +1.01%
XRP $1.42 +0.98%
SOL $106.28 +3.55%
TRX $0.3338 +0.34%
DOGE $0.0909 +5.63%
ADA $0.2192 +2.65%
BCH $260.54 +3.43%
LINK $12.30 +3.73%
HYPE $87.14 +2.76%
AAVE $134.47 +3.47%
SUI $0.8000 +1.64%
XLM $0.1862 +1.62%
ZEC $1,204.23 +19.40%

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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