According to analysis derived directly from the blockchain (on-chain analytics), short-term holders of Bitcoin are currently realizing losses at an alarming pace, mirroring the intensity last observed during the catastrophic FTX exchange collapse in late 2022. The significant spike in realized losses, which measures the amount of depreciation investors are locking in by selling their assets below their purchase price, points directly to widespread selling pressure. This aggressive dynamic strongly suggests the onset of a potential market capitulation phase, where even recent investors rush to exit their positions, reports The WP Times with reference to Telegram.
The current volume of realized losses serves as a critical indicator for market panic, highlighting deep concern among the trading community. Bitcoin's Short-Term Holders (STHs)—defined as those who have held the asset for less than a specific duration—typically reflect the most emotional and reactive segments of the market. The comparison to the metrics seen during the FTX crash is particularly unsettling, as that event marked one of the deepest moments of crisis in the last decade. Historically, the locking in of such substantial losses often precedes or accompanies the formation of a market bottom, but only after the complete exit of "weak hands" from the market.
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