Last week's rout delivered BTC's biggest realized loss ever; bottoming signals grow
Bitcoin recorded its largest-ever realized loss of $3.2 billion during a recent market rout, signaling potential market bottoming.Summary
Last week's market downturn on February 5th caused Bitcoin to experience its largest realized loss in history, totaling $3.2 billion, as the price dropped from $70,000 to $60,000. This metric, tracked by Glassnode as Entity-Adjusted Realized Loss, measures the USD value of coins sold below their purchase price, excluding internal transfers. This massive capitulation surpassed the $2.7 billion loss seen during the 2022 LUNA collapse, fitting the criteria of a textbook capitulation event due to its speed, high volume, and losses crystallized from low-conviction holders. Despite this significant sell-off, which saw daily net losses exceed $1.5 billion, the scale of the loss is interpreted by some analysts as a sign that the market may be nearing a bottom, with Bitcoin trading around $67,600 at press time.
(Source：CoinDesk)