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Since the final quarter of 2025, the cryptocurrency sector has experienced a noticeable downturn, predominantly attributed to a reduction in demand that has caused a sharp decline in price trends. While Bitcoin has managed to hold steady at the $85,000 mark, altcoins are languishing below their 2023 and 2024 lows. The market sees every upward movement as a chance to sell, suggesting that previous cost bases are becoming formidable resistance points.
Bear Markets in Crypto Assets
CryptoQuant’s CEO, Ki Young Ju, a notable figure in on-chain analysis, recently issued a warning following a significant surge in selling at a loss. He pointed out that Bitcoin holders have experienced net realized losses for the first time since October 2023, with a staggering 63,000 BTC in losses reported since late December.
These figures signal a shift from profit-taking to realizing losses within the last 30 days. Beginning from early 2024, realized profit momentum has been on a steady decline, reflected in the diminished peaks observed in January 2024, December 2024, July 2025, and October 2025.
What are the Implications?
The situation mirrors the bull-to-bear phase transition from 2021 to 2022. During that period, realized profits peaked in early 2021, followed by diminishing peaks and subsequent net losses leading into the 2022 bear market. Currently, annual net realized profits have plummeted from 4.4 million BTC in October to a mere 2.5 million BTC, illustrating typical early bear market conditions akin to March 2022.
Recognizing these signals could be pivotal for market participants.
How do investors steer clear of losses in such uncertain times? Strategies suggested by On-Chain Mind stress the importance of patience in managing Bitcoin investments, as they highlight shorter holding periods as more prone to losses.
- 1 day: ~47% chance of incurring losses
- 1 year: 24% chance
- 3 years: Less than 1% chance
- 5-10 years: Zero
“Bitcoin isn’t dangerous. Thinking short-term is.” – On-Chain Mind
This perspective suggests that strategic, long-term approaches in cryptocurrency investments are likely to yield more positive outcomes, emphasizing the importance of adopting a patient outlook amidst market fluctuations.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
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