Leveraged traders suffer $800M daily losses as Bitcoin dips 25% from January highs.
New Investors Face Heavy Losses
The post-election Bitcoin rally has turned into a bear market, with newcomers facing the biggest losses. After reaching an all-time high of $109,071 in January, Bitcoin has fallen nearly 25% to $80,000, dragged down by a global stock market selloff and economic uncertainty.
According to Glassnode, over 20 million new Bitcoin addresses were created in the past three months, but many of these investors are now selling at a loss, as indicated by Bitfinex’s Spent Output Profit Ratio (SOPR) dropping to 0.95—its lowest level in over a year.
Crypto Traders and ETFs Feel the Pain
Leveraged traders are experiencing severe liquidations, with daily realized losses exceeding $800 million, particularly on February 28 and March 4. Additionally, U.S. Bitcoin ETFs have seen four consecutive weeks of outflows, with a record $1.1 billion withdrawn on February 25, per J.P. Morgan.
Uncertain Future Amid Market Volatility
Despite Trump’s pro-crypto stance and the announcement of a Bitcoin strategic reserve, investor sentiment remains weak. Bitcoin’s implied volatility surged to 69%, while Ethereum’s jumped to 90%, suggesting more price swings ahead. Experts predict Bitcoin may stabilize around $73,500, but its fate remains closely tied to broader financial markets.
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