This chart shows the total USD value of losses that #Bitcoin holders have to bear when selling their coins at a lower price than their purchase price.

The recent correction has led to a surge in realized losses currently taking place. This is the highest level ever recorded.
This is one of the largest realized loss events in Bitcoin history, comparable to the spikes seen during the 2018 bear market crash, the March 2020 COVID crash, and the Luna/FTX collapse in 2022.
What does this mean?
A large number of holders are capitulating, either selling or transferring their BTC at a loss.
This extreme acceptance of losses often signals panic selling and forced liquidations.
Historically, these major spikes in realized losses tend to coincide with local or near-bottom lows, as they represent the “filtering out” of weak holders and over-leveraged positions.
Interestingly:
- The Sharpe ratio has hit its lowest point since the previous bottom.
- A major sell-off is underway in the market with such high realized losses.
- Market sentiment is completely empty.
The only difference: Bitcoin has only fallen 50% from its all-time high, not 80%.
The market bottom is near.