Bitcoin Slide Leaves Over 70% of Active capital in Losses as Sentiment Collapses

Bitcoin's recent price decline, erasing nearly 35% from its October peak of $126,000 and sinking near $80,000, has resulted in a significant portion of active capital being underwater. On-chain data from Checkonchain indicates that 71.2% of Bitcoin's realized capitalization, representing the aggregate entry price for active investors, now carries a cost basis above the current trading price, trapping many who bought during late 2024 and early 2025 rallies.

This market fracture is further evidenced by Glassnode data showing the Relative Unrealized Loss indicator spiking to 8.5%, far above the typical 5% seen in healthy bull markets, suggesting a major market reset. Concurrently, market sentiment has collapsed, with social media analysis from Santiment showing retail traders capitulating at levels not seen since December 2023. While Bitcoin staged a modest recovery to $84,543 at press time, these extreme bearish levels historically suggest the market may be clearing out weak hands, potentially setting the stage for a local bottom.

(Source：BeInCrypto)