Yeliz Akmaca 
Bitcoin sharp sell-off last week left a historic mark on-chain. During the sudden collapse on February 5, investors locked in a total of $3.2 billion in realized losses. According to Glassnode and Checkonchain, this move now stands as the largest single capitulation event in Bitcoin’s history — as price fell from $70,000 to $60,000, on-chain behavior began flashing signals typically associated with bear market bottoms.
Price action reflected the severity of the move. On February 5, Bitcoin dropped rapidly from $70,000 to $60,000. The decline didn’t just impact spot markets; it fundamentally shifted on-chain dynamics. At the time of publication, BTC was trading near $67,600. On-chain data suggests price discovery remains active.
According to Glassnode, Asset-Based Realized Loss surged to $3.2 billion. This metric filters out internal transfers and tracks the dollar value of BTC sold below its acquisition price. In simple terms: it measures how much capital was actually lost during panic selling.
These levels now exceed even the darkest days of 2022, when realized losses peaked around $2.7 billion.
Daily Net Losses Surpass $1.5 Billion
On-chain data shared by Checkonchain shows the sell-off followed a textbook capitulation pattern.
According to the platform, last week’s Bitcoin liquidation wave unfolded rapidly, was backed by exceptionally high volume, and reflected position closures by the weakest hands — forming a classic capitulation structure.
With daily net realized losses exceeding $1.5 billion, this move represents the largest absolute USD loss event in Bitcoin’s network history.
Periods like this tend to be emotionally exhausting. Noise rises. Timelines darken. Patience thins. Yet on-chain behavior tells a more nuanced story: capitulations of this magnitude historically tend to appear near bear market bottoms.
Is Market Psychology Shifting?
A realized loss this large sends a clear technical signal: weak hands have largely been flushed from the market.
That doesn’t mean a definitive bottom is in. But historically, similar events are followed by declining volatility, sideways price action, and eventually a search for a new directional trend. Subtle changes matter. Transfer activity slows. Long-term wallets begin accumulating again. Open interest in derivatives starts to stabilize.
The picture is complex — but not one-dimensional.
Where Does Bitcoin Stand Now?
While dip-buying has pushed prices modestly higher, the market remains cautious. On-chain data suggests capitulation has largely played out. What typically follows is a transitional phase: low-volume consolidation, hesitant directional attempts, and gradually returning risk appetite.
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