BlockBeats news, on February 21, cryptocurrency analyst Michaël van de Poppe posted that "Bitcoin's recent pullback has caused realized losses to surge dramatically, reaching an all-time high. This is one of the largest realized loss events in Bitcoin's history, comparable to the bear market crash of 2018, the March 2020 COVID-19 plunge, and the peak losses during the Luna/FTX collapse in 2022."
Large holders are engaging in panic selling, either cutting their losses by selling or transferring their BTC at a loss. Such extreme realization of losses typically signals market-wide panic selling and passive liquidations. Historically, similar surges in widespread realized losses have often occurred at or near阶段性 bottoms, as they represent the complete liquidation of weak hands and highly leveraged positions.
Notably, the Sharpe Ratio has fallen to its lowest level since the previous cycle low; the market is experiencing a massive capitulation event with extremely high realized losses; market sentiment has nearly hit rock bottom. The only difference is that, in this cycle, Bitcoin has declined by approximately 50% from its all-time high, rather than 80%. The bottom is near.