Imagine a traditional market where many traders want to sell their goods, but the number of buyers coming in is decreasing. As a result, some traders are forced to lower prices, even willing to incur losses, in order to get cash. This situation is currently reflected in the Bitcoin market.
The data shows that realized losses—in other words, losses that have actually occurred because assets are sold—are increasing. Selling pressure continues, while transaction volume in the spot market (the direct buying and selling market) remains weak. In other words, more people are selling than buying, and the market absorption capacity has not been strong enough to withstand price declines.
From a broader perspective, this condition describes a market phase that is losing momentum. In the cryptocurrency asset cycle, periods like this are not new. Like ocean waves, there are phases of high and low. The weak buying volume indicates that new interest has not yet returned significantly. In the context of the global economy, uncertainty in interest rates, liquidity pressure, or investor caution towards risky assets can exacerbate the situation. This is not just daily fluctuations, but a reflection of market psychology: confidence is being tested.
However, it is important not to view this situation in black and white. When many investors sell at a loss, it can be a sign of panic—and panic often arises close to the point of saturation of selling pressure. On the other hand, there is no guarantee that the decline will end soon. Retail investors need to understand that the crypto market remains highly volatile. Without disciplined risk management, emotional decisions can actually amplify losses. Remember, selling in a panic and buying in euphoria is a classic pattern that often traps investors.
Looking ahead, the recovery of prices will heavily depend on the return of real and sustainable demand, not just a temporary spike. The market needs 'new energy' in the form of fresh capital flows and regained confidence. Like building a house, a strong foundation is more important than flashy paint. In investing, the wisest approach is not to chase the highest prices or guess the lowest point, but to understand risks and stick with a rational strategy.
