Bitcoin Realized Losses Reach Highest Level Since FTX Crash
On-chain data from Glassnode show that Bitcoin realized losses have surged to their highest point since the 2022 FTX crash. The sharp decline is driven by panic selling from short-term investors. Addresses that acquired BTC in recent months have been quick to liquidate positions after price dips. This mass “capitulation” indicates that the market’s weakest hands are being forced out, weakening marginal demand. The speed and scale of these sales highlight a critical market correction, with many new entrants closing unprofitable positions. While Bitcoin realized losses reflect short-term selling pressure, the correction may persist as marginal demand remains subdued in the near term.
Bearish
Glassnode’s data indicates that the rise in realized losses reflects panic selling by short-term holders, reminiscent of the market reaction after the FTX crash in 2022. Historically, spikes in realized losses correlate with intensified selling pressure and can foreshadow further downside, as wounded confidence from weak hands slows demand. In the short term, this correction may continue as marginal buyers stay sidelined, pushing prices lower. Over the longer term, Bitcoin’s fundamentals and renewed on-chain growth could restore stability, but traders should brace for continued volatility and potential pullbacks before recovery.