In a concerning sign for the crypto market, Bitcoin realized losses have suddenly spiked—reaching levels not seen since the infamous collapse of FTX in late 2022. This metric, which reflects the total value of coins sold at a loss, highlights the growing anxiety among holders during Bitcoin’s recent price turbulence.
The last time this kind of realized loss spike occurred, it was due to one of the most devastating events in crypto history: the FTX meltdown. At that time, billions were lost in panic as confidence in centralized platforms crumbled. Today’s spike, while caused by different factors, still signals a significant level of fear in the market.
What This Means for the Bitcoin Market
Realized losses often surge when long-term holders give in to pressure and sell their Bitcoin at a loss. This pattern can be a sign of capitulation—a moment when even the most committed investors throw in the towel. Ironically, such events can sometimes mark the bottom of a downtrend, serving as a launchpad for a new bullish phase.
Traders and analysts are now watching closely to see whether this wave of realized losses represents a temporary panic or the beginning of a deeper correction. It’s a crucial moment, and sentiment-driven selling could either push prices lower or trigger opportunistic buying from long-term bulls.
JUST IN: Bitcoin realized losses just spiked to levels last seen during the FTX collapse, per @glassnode. pic.twitter.com/cpO3Gm59Hh
— Cointelegraph (@Cointelegraph) November 21, 2025
Is It Time to Buy the Fear?
Some seasoned investors view spikes in realized losses as a contrarian buy signal. When fear grips the market, and everyone seems to be selling at a loss, it often opens the door for value buyers to step in. However, timing the market remains tricky—especially in a macro environment full of economic uncertainty and regulatory pressure on crypto.
The recent data spike is a clear reminder of how fragile sentiment can be in the crypto space. Whether this marks a local bottom or the beginning of a deeper downturn remains to be seen. Still, for those paying attention, moments like these are when long-term strategies are truly tested.