Bitcoin Realized Losses Rise To Ftx Crash Levels: Where Is The Bottom?

With short-term holders driving Bitcoin’s sell-off, realized losses are hitting historic levels, leaving investors to wonder where the bottom might be.

Bitcoin has taken a slide back to its April level of around $83,000, with mounting selling pressure prompting many investors to sell at a loss, reminiscent of major historic market crashes.

Realized losses on Bitcoin (BTC) have surged to levels not seen since the 2022 FTX collapse, according to blockchain data platform Glassnode.

“The scale and speed of these losses reflect a meaningful washout of marginal demand as recent buyers unwind into the drawdown,” Glassnode noted in an X post on Friday.

Glassnode’s observation came minutes before Bitcoin slipped as low as $80,500 on Coinbase, marking a 36% decline from its all-time high of $126,210 recorded just weeks ago in early October.

According to Glassnode, a big chunk of selling in the ongoing Bitcoin crash is due to short-term holders.

Data from analytics platform CryptoQuant shares a similar perspective, noting that short-term selling “often marks a local bottom if the price quickly reclaims the cost basis.”

“Failing to do so historically indicates a deeper bearish trend or confirms a bear market,” CryptoQuant wrote on X on Thursday.

Although many market observers say the current downturn could signal the end of the bull market that began in 2023, prominent industry figures such as Jan3’s Samson Mow have cast doubt on the onset of a crypto winter.

“How can we have a bear market when we haven’t even had a proper bull market?” Mow asked in a post on X on Thursday, referring to growing caution across the market.

Source: CoinTelegraph