Bitcoin has experienced a dramatic sell-off, plummeting 35% from its peak around $126,000 to roughly $80,000 in under two months. This rapid decline forces many investors to realize losses, triggering aggressive selling among short-term holders seeking to exit positions. This extreme market drop is reminiscent of past historical events like the COVID crash, China’s mining ban, and the Terra Luna collapse, according to market analyst Axel Adler. The current price drop has brought about a significant increase in unrealized losses as traders try to navigate this volatile landscape. 69% probability of a December Federal Reserve rate cut also fuels uncertainty, adding to the volatility, with potential impact on macro pressure.