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
Crypto Biz: Shareholders revolt over Bitcoin treasury
Bitcoin (CRYPTO: BTC) treasuries have become a flashpoint for investors weighing the merits and risks of corporate crypto bets, as activists push for governance changes and potential sales. After a multi-quarter stretch of price softness across the sector, several high-profile treasury strategies ar
CryptoBreaking14m ago
ProCap Expands BTC Treasury to 5,457 While Corporate Bitcoin Adoption Accelerates
_ProCap Financial increases Bitcoin holdings to 5,457 BTC after buying 450 coins as companies accelerate corporate Bitcoin treasury strategies._
Corporate interest in Bitcoin continues rising as companies increase digital asset reserves. ProCap Financial recently expanded its Bitcoin treasury
LiveBTCNews28m ago
Riot Platforms' 2025 revenue hits a record high of $647 million, accelerating the expansion into AI and high-performance computing businesses
Bitcoin mining company Riot Platforms announced its 2025 performance, with revenue reaching $647.4 million, a new record high. The company mined 5,686 Bitcoins throughout the year, generating $576.3 million in revenue. The CEO stated that the company is accelerating its transformation towards AI and high-performance computing infrastructure to create long-term value.
GateNews58m ago
Core Scientific Q4 revenue declines, Bitcoin mining income drops significantly, accelerating transformation into data center infrastructure
Bitcoin mining company Core Scientific released its Q4 2025 financial report, with total revenue of $79.8 million, a year-over-year decrease. Mining revenue decreased to $42.2 million, while hosting service revenue increased to $31.3 million. Although gross profit rose to $20.8 million, adjusted EBITDA was -$42.7 million, indicating ongoing profitability pressure during the transition.
GateNews1h ago
Bitcoin futures demand sinks to 2024 lows: Are institutions exiting?
Bitcoin (CRYPTO: BTC) staged a cautious recovery, rising roughly 10% from a Saturday retest near $63,000 as traditional markets moved in a contrasting direction amid geopolitical tensions in the Middle East. The uptick offered a measure of relief for bulls, yet a closer inspection of the
CryptoBreaking2h ago
