Glassnode: Bitcoin Repeats 2022 Bear Market Bottom as Investors Fall Into Extreme Fear

▲ Bitcoin (BTC)/ChatGPT-generated image

Bitcoin (BTC) is triggering extreme investor fear as it pours out record realized losses, mirroring signals that have historically marked bear market bottoms.

According to cryptocurrency outlet CryptoPotato on Feb. 24 (local time), on-chain analytics firm Glassnode diagnosed that Bitcoin investors have entered a capitulation phase, dumping holdings at a loss. As Bitcoin continues its downward trend, threatening the $63,000 support level, selling pressure has intensified, particularly among short-term holders. After undergoing a significant correction from its January peak of $98,000, Bitcoin is now widely considered to have effectively entered a bear market.

Glassnode data shows that Bitcoin’s 7-day average realized losses have surpassed $1.26 billion per day, underscoring peak levels of investor fear. In certain periods, more than $5.4 billion in realized losses were recorded in a single day, signaling an explosion of capitulatory selling pressure. Realized losses occur when investors sell assets below their purchase price and typically surge near the end of downturns when panic selling reaches its climax.

While the current scale of realized losses is severe enough to be compared with the 2022 bear market, some analysts argue that an absolute bottom has not yet been reached. When converting monthly cumulative realized losses into Bitcoin terms, the current figure stands at around 300,000 BTC, still below the 1.1 million BTC recorded at the end of the 2022 downturn. However, the ratio of 90-day realized profits to losses has fallen to between 1 and 2, clearly signaling a sharp slowdown in capital rotation—an archetypal sign of a market slump.

Analysts point to Bitcoin’s realized price—considered its effective bottom—near $54,900, leaving open the possibility of further declines toward that level. With institutional inflows through spot Bitcoin ETFs stagnating and signs of miner capitulation emerging, the market’s fundamental strength has weakened. Should the $60,000 support level break in the short term, expectations are growing that the $54,900 zone will serve as the final line of defense.

Bitcoin is currently enduring a prolonged correction amid the dual pressures of technical resistance and macroeconomic uncertainty. As investors’ psychological threshold is tested, global attention is focused on whether large-scale realized losses will flush out weak hands and toxic supply—or mark the beginning of a deeper downturn. With volatility in the digital asset market at extreme levels, prudent risk management is being emphasized more than ever.

Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses arising from it. The content should be interpreted solely for informational purposes.