BTC bottoming out in progress Realize a net decrease of $14.8 billion in market value (RC) within 30 days; On February 18th, the peak value was 28.8 billion US dollars. When Bitcoin: native drops to the same price, the magnitude of RC net decrease decreases. What important information is worth paying attention to behind this? RC is essentially a net inflow and outflow of funds priced at cost. When chips move at a price lower than their cost, they achieve a downward adjustment in market value, and the red color represents the net scale of this loss realization. So, there are three main reasons behind this: one ⃣ Overall cost reduction; The deep surrender in February is equivalent to forcibly replacing a batch of high cost chips at a low level. When the price falls back to the same range, the portion of supply that can achieve losses has already been digested one round earlier, so the net reduction level naturally decreases. This is direct evidence of structural failure caused by dumping pressure. The most intuitive understanding is that there is a deviation between data form and price behavior. two ⃣ Marginal seller depletion; There are fewer and fewer chips willing to cut at this price point, and the remaining ones either have lower costs and stronger beliefs, or have low liquidity and are temporarily stagnant. three ⃣ The decrease in net reduction magnitude may also be simply a shrinkage of overall activity on the chain; With fewer hand changes, RC hasn't changed much. Therefore, in order to exclude this reverse interpretation, we need to compare it with EA-TRV (total transfer volume after entity adjustment). From a data perspective, an average of 10.1w BTC were transferred daily on June 7th; In February, there were 13.60000 pieces; Compared to that, there is indeed a decrease, but not as much. Therefore, the biggest impact on the data of "significantly reducing the net reduction of RC at the same price" is due to the aforementioned reasons 1 and 2, namely forced turnover in deep surrender, which lowers overall costs and leads to marginal seller depletion. Of course, this is more like one of the evidences of "grinding the bottom in progress" rather than a direct confirmation of "the bottom has arrived".