Bitcoin Records Second-Largest Unrealized Loss in History Amid Market Pressure

Bitcoin nearly reached $67,000 on Monday after US President Donald Trump said the US had 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 enduring one of history’s biggest paper-loss periods, yet panic-driven selling activity remains unusually muted across exchanges.

Pain Builds Beneath the Surface

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

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

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

For now, the data suggests panic selling remains limited.

“Liquidity Grab”

Certain market experts are not convinced that Bitcoin’s latest rebound is sustainable. Crypto analyst Ted Pillows, for one, said many traders now think the war situation is easing and that a deal has already been reached, which is why some expect the market to rally strongly. But according to him, Bitcoin’s recent move looked more like a liquidity grab than a real breakout.

He said Bitcoin could still rise toward 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 that move. Pillows added that this week’s Fed meeting and the possibility of more rate hikes from Japan could play a big role in deciding where the market moves next.

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

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