Figure 3 Bitcoin Entity-Adjusted Realised Losses Smoothened Curve. Source: Glassnode)
The scale of the losses surpasses the realised-loss waves seen at the two major lows earlier in the current cycle, notably during August 2024 and April 2025, signalling a more pronounced erosion of confidence. Such heavy loss realisation is characteristic of a market under stress, and one actively seeking liquidity as participants increasingly exit positions at a loss due to fading momentum and deteriorating sentiment. Historically, these spikes in realised losses tend to occur near the later stages of corrective phases, as price drops flush out weaker hands before stability can be restored. Turning to off-chain dynamics, futures and perpetuals BTC open interest OI has also continued to decline in tandem with price, steadily unwinding the leverage accumulated during earlier phases of the rally. Importantly, this deleveraging has been relatively orderly, with minimal evidence of forced liquidations, a sign that derivatives participants are managing risk proactively rather than capitulating under pressure.