Crypto

Bitcoin Traders Face Realized Losses Comparable to FTX Crash — What’s Going On?

Exploring Bitcoin’s Market Dynamics in 2025

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The Current State of Bitcoin in 2025

The year 2025 has been a rollercoaster for Bitcoin, the premier cryptocurrency. It kicked off with a surge to an unprecedented all-time high. However, by the end of the first quarter, Bitcoin had experienced a decline exceeding 15% of its initial value. While the cryptocurrency seems to be stabilizing within a consolidation phase, future prospects remain uncertain, causing discontent among some short-term investors, prompting them to exit the market.

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Will Bitcoin Experience an Upsurge?

In a recent analysis shared on the X platform by an on-chain analyst known as Darkfost, it was highlighted that a specific group of Bitcoin holders has been selling their assets at a loss. This trend, reminiscent of the sell-offs during the FTX collapse, indicates significant market activity. The Profit/Loss Margin, a metric that assesses investor profitability by comparing purchase price to the current market value, reveals a notable dip.

Darkfost’s analysis focuses on short-term Bitcoin holders, those who have possessed BTC for one to three months. This group is known for its quick reactions to market changes, a trait evident in their recent trading behavior.

According to the analysis, these short-term investors have been offloading their Bitcoin at a loss since early February. The extent of these realized losses echoes levels seen during the FTX crisis and surpasses those witnessed in the 2024 market downturn. Historically, when Bitcoin’s short-term holders realize considerable losses, it often precedes upward price movements, especially as long-term investors continue to accumulate. This trend suggests that long-term investors might soon absorb coins from these weaker hands, potentially setting the stage for a bullish rally.

A Snapshot of Bitcoin’s Current Price

As of now, Bitcoin is trading at approximately $83,700, showing minimal fluctuation over the past 24 hours. Data from CoinGecko indicates a modest 1% increase over the last week.

The cryptocurrency’s price is consolidating around the $84,000 mark on the daily chart, reflecting a period of relative stability.

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At Bitcoinist, our editorial process is dedicated to delivering content that is meticulously researched, accurate, and unbiased. We adhere to stringent sourcing standards, and every piece of content undergoes comprehensive review by our team of top-notch technology experts and seasoned editors. This rigorous process ensures that our readers receive content that is both informative and valuable.

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Emma Horvath

After graduating Communication and Media Studies MA in Eötvös Loránd University, Emma started to realize that her childhood dream as a creative news reporter committed to find dynamic journalism stories. I'm a passionate journalist with a keen interest in the fast-evolving world of cryptocurrencies. I've been reporting on the latest developments in the crypto industry for several years now, covering breaking news and providing insights on how the market is trending. I'm adept at analyzing daily market movements, researching ICOs, and keeping track of the latest innovations in blockchain technology. My expertise in the space makes her a trusted voice in the crypto community. Whether it's the latest Bitcoin price movements or the launch of a new DeFi platform, I am always at the forefront, bringing her readers the most up-to-date and informative news.

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