Capital is exiting, and panic may already be priced in.
Bitcoin’s [BTC] recent drop is making the market feel uneasy. However, not everyone sees this as a bad thing. Researchers say times like these create some of the best opportunities, especially when fear starts to take over.
Panic is doing the heavy lifting
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Bitcoin holders’ losses are still outweighing profits.
Source: X
So many investors are selling Bitcoin at a loss after buying near recent highs.
Source: Cryptoquant
Meanwhile, new capital is leaving the market. New investor inflows have turned negative, with roughly $2.6 billion exiting Bitcoin over the past 30 days.
In stronger markets, dips usually attract new buyers. This time, that support is missing, making every dip feel weaker. Adding to the pressure, the realized profit-to-loss ratio has dropped too. It was at around 0.25 at the time of writing, meaning losses are being locked in much faster than profits.
Readings like these usually show up when confidence is less and sellers are dominating.
A caveat worth noting
A recent Santiment report stated that periods of strong fear often show up just as Bitcoin nears a short-term bottom.
Source: Santiment
When online conversations fill up with words like “crash” and “sell,” prices are often already close to local lows.
The report also noted that traders tend to stop buying dips right before the market starts to recover. Selling pressure usually begins to slow when confidence lessens and negativity takes over. That gives space for a rebound.
Source: Santiment
Metrics like the MVRV reveal whether recent buyers are in profit or loss. When many holders are sitting on losses, forced selling often calms.
When the mood feels the worst, the market is sometimes closer to a turning point than it looks. Given the current state of the crypto market, it can be inferred that now is a good time to enter.
Final Thoughts
- Bitcoin may be close to a short-term bottom. When most holders are selling at a loss, risk often goes from downside to missed opportunity.
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