Bitcoin Records Second Largest Unrealized Loss in History Despite Market Pressure

The Bitcoin market is suffering, but holders have not yet returned their coins, according to the founder of Alphractal.

Bitcoin nearly hit $67,000 on Monday after U.S. President Donald Trump said the United States helped broker a peace deal with Iran that would reopen the Strait of Hormuz.

At the same time, new data suggests that BTC holders are experiencing one of the largest periods of paper losses in history, but panic-driven selling activity remains unusually quiet on exchanges.

Pain builds beneath the surface

Bitcoin has now recorded the second largest unrealized loss in its history. This means that a large number of BTC holders are currently sitting on paper losses.

However, Alphractal founder Joao Wedson said realized losses remain relatively small, indicating that investors are not selling their holdings at a loss in large numbers despite market pressure.

Wedson explained that many market participants are underwater, but the typical signs of broad capitulation have not yet appeared. According to his analysis, the gap between high unrealized losses and low realized losses constitutes a major signal for the market. He warned that if realized losses start to rise sharply, Bitcoin could face a more aggressive cleansing phase.

For now, data suggests panic selling remains limited.

“Taking cash”

Some market experts are not convinced that Bitcoin’s latest rebound is sustainable. Crypto analyst Ted Pillows, for his part, said that many traders now believe that the war situation is easing and that a deal has already been reached, which is why some are expecting a strong market recovery. But according to him, Bitcoin’s recent move looked more like a cash grab than a real breakthrough.

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He said Bitcoin could still reach the $68,000-$70,000 range if it manages to hold above $65,000. For now, however, he does not see enough strength in the market to confirm this decision. Pillows added that this week’s Fed meeting and the possibility of further rate hikes from Japan could play an important role in deciding where the market goes next.

Analyst Lennaert Snyder also noted that it is important to hold the $64,800 level to keep the short-term uptrend intact.