Bitcoin bear market losses approach record of $211 billion

The current Bitcoin bear market is leaving significant traces. Since the peak in October, approximately $174 billion in realised losses have been recorded, according to an analysis by onchain data provider CryptoQuant. This brings the market close to the record of the previous bear market, which totalled $211 billion in losses. The Bitcoin price is currently at $62K.

Bitcoin is available at OKX and Bybit.

Realised losses over the years

To put the current situation into perspective: in the 2014 bear market, total realised losses amounted to only $2.4 billion. At that time, the market capitalisation of Bitcoin was only about $6 to $8 billion. In 2019, losses already rose to $55.9 billion, and in the 2022-2023 bear market, the provisional record of $211.5 billion was set.

Analyst Darkfost points out that higher losses in USD with each new cycle are logical. As Bitcoin’s market capitalisation grows, the absolute dollar losses also increase with similar selling behaviour. This makes a direct comparison between cycles difficult, but does provide an indication of the magnitude of the current correction.

Has the market not yet reached the bottom?

With $174 billion in realised losses, the market is still below the record of $211.5 billion from the previous cycle. Darkfost indicates that this may suggest the market may need to purge further, although he himself describes this as a somewhat subjective conclusion. If the bear market continues for a few more months, it is conceivable, according to him, that the 2023 record could still be broken.

The figures align with broader concerns in the market. For instance, Bitcoin investors are currently at a record loss of $920 billion, and outflows from Bitcoin ETFs have reached record levels of 2,450 BTC per day. Yet, according to Darkfost, the bear market is already well advanced, which means that further decline is not certain.