Bitcoin: Traders Face Record-Breaking Losses

After reaching a new all-time high at the beginning of the year, Bitcoin has recorded a drop of over 15% in the first quarter of 2025. This situation raises concerns among many short-term investors who are leaving the market with significant losses, comparable to those observed during the FTX collapse.

Bitcoin traders are experiencing record losses similar to the FTX crash

Bitcoin traders are currently selling their assets at loss levels never seen since the resounding collapse of FTX.

On-chain analyst Darkfost revealed this alarming trend on platform X, sharing concerning data on the behavior of Bitcoin holders.

Since early February 2025, investors holding Bitcoin for one to three months (categorized as short-term holders) are massively disposing of their assets, thus accepting significant losses. These rushed sales have reached a scale that surpasses even the correction periods of 2024.

The indicator of profit/loss margin, which measures the profitability of positions by comparing the purchase price to the current price, shows a drastic decline for this category of investors.

This metric allows us to quantify the magnitude of unrealized profits or losses in the market, and its current level signals strong selling pressure.

A capitulation that could signal a rebound!

Massive capitulation periods from short-term holders have historically preceded significant phases of Bitcoin price increases. This phenomenon can be explained by a transfer of assets from “weak hands” (easily shaken investors) to “strong hands” (more convinced long-term investors).

Currently, despite this wave of selling at a loss, long-term holders continue to accumulate Bitcoins. This behavioral divergence between the two categories of investors is often interpreted as a preliminary signal of a future price increase.

At the time of writing, Bitcoin is trading around $76,200, down nearly 10% in the last 24 hours. CoinMarketCap data indicates that the entire cryptocurrency market is suffering, with even greater losses for altcoins.

The market is currently going through a decisive turning point. This massive capitulation of short-term investors could, as in the past, signal a coming rebound for Bitcoin.

An even more relevant signal as whales have recently resumed their purchases for the first time since August 2024, despite a decline that now reaches nearly 30% from the all-time high of $109,000.

Key factors to watch: the evolution of behavior among institutional investors and announcements from the Trump administration, whose recent protectionist measures have already triggered the liquidation of $1.3 billion in positions within 24 hours, causing BTC to fall below the symbolic barrier of $80,000, an event that shook the crypto market.