Bitcoin's recent price decline has led to record realized losses, marking one of the largest loss events in its history. Cryptocurrency analyst Michaël van de Poppe highlighted that the current situation is comparable to past significant downturns, such as the 2018 bear market, the March 2020 COVID-19 crash, and the 2022 Luna/FTX collapse. Large holders are reportedly panic selling, either offloading their Bitcoin at a loss or transferring it under duress. This surge in realized losses is often indicative of market-wide panic and passive liquidations, suggesting a potential near-term bottom. Historically, such events have coincided with the liquidation of weak hands and highly leveraged positions. Despite the current decline being around 50% from Bitcoin's all-time high, as opposed to the typical 80% drop in previous cycles, market sentiment is nearing rock bottom, signaling a possible capitulation event.