Analysts: Realized losses from the recent Bitcoin pullback have hit a record high, potentially indicating a near-term bottom.

According to ME News, on February 21 (UTC+8), crypto analyst Michaël van de Poppe wrote that the recent Bitcoin pullback has led to a significant surge in realized losses, reaching an all-time high. This is one of the largest realized loss events in Bitcoin's history, comparable to the peak losses during the 2018 bear market crash, the March 2020 COVID-19 pandemic crash, and the 2022 Luna/FTX crash. A large number of holders are capitulating, either selling at a loss or transferring their BTC at a loss. Such extreme loss realization typically signifies panic selling and forced liquidations. Historically, similar large-scale surges in realized losses tend to occur at or near market bottoms, as this represents the complete liquidation of weak hands and highly leveraged positions. Notably, the Sharpe Ratio has fallen to its lowest level since the last bottom; the market is experiencing a massive capitulation event with extremely high realized losses; market sentiment has almost reached rock bottom. The only difference is that this round of Bitcoin's decline from its all-time high is only about 50%, not 80%. The bottom is near. (Source: ME)