Last week's rout delivered bitcoin's biggest realized loss ever; bottoming signals grow

The largest realized loss in bitcoin history occurred during last week’s market downturn, shattering previous records as the asset plummeted from $70,000 to $60,000 on Feb. 5.

According to Glassnode, the Entity-Adjusted Realized Loss reached $3.2 billion. This metric exclusively tracks the USD value of moved coins sold below their acquisition price while filtering out internal transfers between the same entity.

This massive capitulation surpassed even the darkest days of 2022, eclipsing the $2.7 billion loss recorded during the LUNA$0.05786 collapse.

According to data platform Checkonchain, “Last week’s bitcoin sell-off meets the criteria of a textbook capitulation event. It occurred rapidly, on heavy volume, and crystallised losses from the lowest-conviction holders.”

With daily net losses exceeding $1.5 billion, the scale of this sell-off represents the most significant absolute USD loss ever crystallized in the network’s history. This points to more signs of a bear market bottom.

As of press time bitcoin is trading around $67,600.