Bitcoin Traders’ Realized Losses Reach FTX Crash Levels — What’s Happening?

The price of Bitcoin has had an interesting performance so far in 2025, starting the year with a run to a new all-time high. However, the flagship cryptocurrency finished the year’s first quarter with over 15% of its value shaved off in those three months.

While the BTC price appears to be steadying within a consolidation range, the prognosis doesn’t look all positive for the world’s largest cryptocurrency. This explains why several short-term investors are getting frustrated and, as a result, exiting the market.

Is Bitcoin About To Go Up?

In a new post on the X platform, an on-chain analyst with the pseudonym Darkfost revealed that a certain class of Bitcoin holders have been selling their assets at a loss. According to the crypto pundit, the sell-offs are occurring at a rate not seen since the FTX collapse.

This on-chain observation is based on a significant drop in the Profit/Loss Margin, which tracks the profitability of investors by comparing their purchase price to the current price of a cryptocurrency. This metric offers insight into whether the market is in a state of unrealized profit or loss.

Specifically, Darkfost’s analysis focuses on Bitcoin investors who have been holding BTC for between one to three months (otherwise known as short-term holders). These traders are considered the most reactive class of holders, a trait highlighted by their recent activity.

According to Darkfost, BTC short-term holders have been offloading their coins at a loss since early February. These realized losses have now reached levels last seen in the FTX crash and are even higher than the losses recorded during the 2024 price pullback.

Historically, significant loss realization by the Bitcoin short-term holders has preceded substantial upward price movements, especially when long-term holders continue to accumulate. Hence, the persistence of this trend means that long-term investors will take the coins off the weak hands before the next bullish jump.

BTC Price At A Glance

As of this writing, the price of BTC stands at around $83,700, reflecting no significant change in the past 24 hours. According to data from CoinGecko, the market leader is up by 1% in the last seven days.