Bitcoin continues to face downward pressure even after the Federal Reserve implemented its third consecutive interest rate reduction, with on-chain data revealing realized losses around -18%, which remains significantly above the historical capitulation benchmark of -37% observed during previous market lows.
The Federal Reserve recently lowered interest rates by 25 basis points for the third time in a row, bringing the target range to 3.5%–3.75%. Notably, one Fed member appointed during Trump’s administration advocated for a more aggressive cut of 50 basis points.
Data from Ali Charts highlights that Bitcoin traders have yet to reach levels associated with major market bottoms. Realized losses currently hover near -18%, well shy of the deeper losses that typically signal strong buying opportunities at cycle troughs.
While short-term Bitcoin holders are offloading their positions amid price weakness, long-term investors remain active buyers, helping to stabilize BTC prices close to key support zones despite an easing monetary environment.
The Federal Reserve’s decision marks its third straight rate cut aimed at stimulating economic activity; however, dissent within the committee underscores ongoing debate about how far cuts should go. Market expectations suggest further reductions could be on the horizon through 2026.
Realized loss metrics quantify actual trader losses upon selling assets and differ from unrealized paper losses held in portfolios. Historically low readings near -37% have coincided with capitulation phases where long-term investors enter aggressively—conditions not yet met according to current figures.
This divergence between holder types contributes significantly to market dynamics: short-term participants tend toward selling under pressure while longer-term holders accumulate positions steadily, fostering volatility but also underpinning potential recovery momentum.
Some analysts attribute recent Bitcoin softness partly to profit-taking following prior rallies and lingering regulatory uncertainties impacting investor confidence across digital asset markets.