Short-Term Bitcoin Holders Post Record Loss of $2.3 B

The market weathered one of the most severe capitulations in the history of the flagship cryptocurrency. The network recorded realized losses of $2.3 B. CryptoQuant analysts place this sell-off on par with the Terra/Luna ecosystem crash and the 2021 collapse.

Negative exits of this magnitude have occurred only a few times in the industry’s entire existence.

Who Is Selling

The pressure comes exclusively from short-term holders. These are addresses holding coins for less than 155 days. The bulk of sellers entered the market at the highs — in the $80,000 – $110,000 range. Now these overleveraged retail traders are realizing colossal losses — long-term investors are not participating in this panic.

A CryptoQuant analyst notes that the seven-day moving average of losses entered the top 5 historical values. Bitcoin trades around $67,000, having lost nearly 50% from its October all-time high of $126,000. The market tested the local bottom on February 6 at the $60,000 mark.

Risk of Deep Drawdown

Extreme loss realization often triggers a price bounce — we have already seen a recovery from $60,000 to $71,000. However, analysts warn: this may be just the beginning of a slow and deep exhaustion with periods of relief, which happen even in severe bear markets.

An important benchmark is the realized price, currently at the $55,000 level. Usually, this metric indicates a cycle bottom. In the past, prices dipped 24–30% below this level before finding solid ground and entering accumulation.

Read also:

• Crypto, Faith, and a Bit of Satoshis: Confessions of an Unrepentant Noob

This post is for informational purposes only and does not constitute advertising or investment advice. Please do your own research before making any decisions.