The loss of Bitcoin traders realizing reached FTX crash level – What happened?

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Bitcoin’s price has performed interestingly so far in 2025, starting this year and continuing to new all-time highs. However, flagship cryptocurrencies were completed in the first quarter of the year, with more than 15% of their value slashed in those three months.

Although BTC’s price seems to be stable within the consolidation range, the prognosis does not appear to be positive for the world’s largest cryptocurrency. This explains why several short-term investors were frustrated and therefore left the market.

Is Bitcoin going to rise?

In a new post on X platform, a chain analyst with the pseudonym DarkFost shows that certain categories of Bitcoin holders have sold their assets at a loss. According to crypto experts, the sell-off is a speed not seen since the FTX crash.

This on-chain observation is based on a substantial drop in profit/loss profit margins, which tracks investors’ profitability by comparing the purchase price to the current price of the cryptocurrency. This metric provides insight into the market being in an unrealized profit and loss state.

Specifically, DarkFost’s analysis focuses on Bitcoin investors who have been holding BTC for one to three months, also known as short-term holders. These traders are considered the most reactive holders, which is emphasized by their recent activity.

Source: @Darkfost_Coc on X

According to Darkfost, short-term BTC holders have been losing money since early February. These realized losses are now at the last level of the FTX crash, even higher than those recorded during the 2024 price drop.

Historically, significant losses for short-term holders of Bitcoin have been before the price rises, especially as long-term holders continue to accumulate. Therefore, the persistence of this trend means that long-term investors will take the coin from their weak hands before the next bullish.

BTC price One glance

As of this writing, BTC is about $83,700, reflecting no significant changes in the past 24 hours. Market leaders have grown by 1% over the past seven days, according to Coingecko.

The price of Bitcoin is thickening around the $84,000 level on the daily timeframe | Source: BTCUSDT chart on TradingView

Featured images from Istock, charts for TradingView

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