| What to Know: - Seven-day realized losses hit $2.3B, rivaling 2021 crash magnitudes. - February 5 single-day losses reached $3.2B, surpassing 2022 LUNA turmoil. - Losses concentrated among short-term holders, signaling a classic risk-off capitulation. |
Bitcoin’s latest capitulation ranks among the biggest on record. As reported by Cointelegraph, realized losses over a seven-day window reached about $2.3 billion, placing the drawdown alongside the 2021 crash.
On a single-day basis, February 5 logged roughly $3.2 billion in realized losses, surpassing the ~$2.7 billion recorded during the LUNA-related turmoil in 2022, as reported by Cryptopolitan.
Realized loss measures the dollar difference between a coin’s cost basis and the price at which it moved on-chain, aggregated across spenders. Methodological choices, such as seven-day averaging versus single-day snapshots, explain the $2.3B versus $3.2B figures.
Despite those differences, both readings indicate a top-tier loss event concentrated in short-term holders, consistent with a classic risk-off capitulation. That context helps distinguish structural washouts from routine volatility.
At the time of this writing, Bitcoin traded near $67,000 as investors awaited U.S. CPI data and the Federal Reserve policy outlook, as reported by CoinCentral. The spot tape reflected a broad risk reset across crypto.
Standard Chartered has flagged persistent spot Bitcoin ETF outflows and noted that many positions may sit near an average entry around $90,000, increasing the likelihood of supply from underwater holders. Such flow dynamics can dampen rebound attempts during macro uncertainty.
Market structure commentary emphasizes that the current stress stems from short-term holder capitulation rather than platform failures, according to on-chain metrics. This framing aligns with prior cycle resets.
“One of the largest capitulation events in BTC history,” said IT Tech, analyst at CryptoQuant.
In practice, realized-loss spikes, ETF outflows, and a policy-sensitive macro backdrop suggest near-term positioning remains defensive. Subsequent direction will likely depend on data releases and the balance of flows.
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