Bitcoin's price has recently dropped, but past data indicates that the cryptocurrency was overdue for a correction.

In the last month, the cryptocurrency market has experienced a significant decline, and new investors are struggling to handle the market's ups and downs.

Recent data from the blockchain shows that those who bought Bitcoin in 2024 during the peak of a bull market are now selling in a panic at a loss as the price of the asset shifts.

According to Glassnode, the number of "realized losses" has increased in the last two months due to high volatility in the market.

The concept behind realized losses is comparing the price of coins when they are sold to the price when they were initially bought, to determine whether the investor made a profit or a loss.

Although today's market downturn may seem concerning, it does not necessarily indicate that the Bitcoin bull market is coming to an end.

Data from the futures market suggests that the current situation is driven more by the spot market than other factors.

There is still a significant number of Bitcoin holders who bought the asset at a higher price and are currently at a loss, representing a majority of their holdings.

Analysts have predicted that Bitcoin's price was due for a correction, as it had not experienced a substantial drop compared to previous bull runs.

Overall, experts believe that a market downturn would be beneficial for the sustainability of the bull market in the long run.