During yesterday's drop, the Entity-Adjusted Realized Loss (EARL) was $562M. The scale of the losses wasn’t significant, indicating this wasn’t another wave of panic selling. After all, there was already a massive panic sell-off not long ago (February 5th) with an EARL of $2.9B. As long as there are no extreme unexpected events, we’re likely in the “nothing left to sell” phase following the massive sell-off. However, with liquidity drying up, even the slightest movement can make prices more sensitive. Looking back at the previous cycle, when EARL was around $500M, it roughly corresponded to the July-November 2022 period (when pessimism led to realized losses of similar dollar value). Similarly, there was a massive panic sell-off in early July (Luna collapse, EARL: $2.7B). Therefore, we can continue to observe using this logic: if BTC hits lower prices but EARL doesn’t reach new highs, it would be a relatively clear bottoming signal. ---------------------------------- Note: EARL excludes on-chain transfers between addresses within the same entity cluster, meaning “internal transfers” do not generate any value.