Bitcoin’s Drama: Will 61% Less Losses Save It? Spoiler: Probably Not!

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Bravo, Bitcoin! You’ve really outdone yourself. In early February, your short-term holders threw a full-blown meltdown at the Bitcoin Carnival, flushing everything down the drain like a panicked toddler with a piggy bank. The Entity-Adjusted Short-Term Holder Net Realized Profit/Loss? Oh, it plummeted like a crypto bro’s confidence after a bad day at the casino. On Feb 6th, the 7D-EMA printed a daily loss of -$1.24 billion. That’s not a number-it’s a cry for help.

But fear not! The panic began to wane as selling pressure cooled off like a hot dog left in the fridge. Loss bars shrank session by session, because even Bitcoin can’t keep up the pretense of chaos forever. As the market absorbed the distressed supply (because who wouldn’t take free Bitcoin from a sobbing whale?), the 7D-EMA crept back toward zero, whispering, “Maybe it’s time to stop crying over coins.”

By Feb 23rd, the 7D-EMA improved to -$0.48 billion-a 61% reduction in loss intensity over 17 days! That’s like cutting your losses from a flaming dumpster fire to a slightly smoky backpack. But let’s not get ahead of ourselves. The Entity-Adjusted metric is still negative, which means we’re not in “profit party” territory yet. Just “less sad” territory.

Meanwhile, derivatives took a turn for the worse. Funding Rates hit -0.038%, Liquidations spiked by 450% to $473 million, and Open Interest slid toward $96 billion. It’s like watching a crypto-themed game of Jenga where everyone’s holding their breath. Seller exhaustion is building, but let’s not confuse that with victory. This is early base formation, folks-not the grand finale of a fireworks show.

BTC STH Loss Overhang: Still Throwing Shade Despite the Chill

While the short-term holders have dialed back the drama, the whales are still throwing shade. Realized losses may have eased, but unrealized losses are still a $26 billion albatross around Bitcoin’s neck. Remember when these whales were buying up BTC like it was clearance toilet paper? Now they’re stuck with paper losses that make a rainy day feel sunny by comparison.

The breakdown below $60k in February was the moment whales realized they’d bought a sinking ship. On Feb 6th, their unrealized losses hit $32 billion-because nothing says “fun times” like a multi-billion-dollar heartburn. Even now, with prices stabilizing, those whales are still underwater. And until they decide to stop flapping like a fish and start swimming, Bitcoin’s stability is as shaky as a house of cards in a hurricane.

It’s not luck-it’s physics.

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2026-02-23 18:29