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.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post $3.2B Wiped Out: Bitcoin Records Largest Realized Loss in History appeared first on Coin Engineer.

Long-Term Bitcoin Activity Increasing 

Glassnode data reveals that the spending volume of Bitcoins held for one to five years has risen to $4.02 billion. This marks the highest level since February and represents the fifth largest spending wave of the bull market. 

Since the start of this bull market, old Bitcoin holders have sold large amounts of BTC after each rally. Investors spent significant amounts of BTC in March, October, November 2024, and February 2025. 

Spending by older $BTC holders is heating up again. Aggregate volume from the 1y–5y cohorts just hit $4.02B – the highest since February.
Older coins are on the move pic.twitter.com/jhMETQFJdB

— glassnode (@glassnode) May 28, 2025

The largest spending in this cycle occurred in October 2024, reaching $9.25 billion. Most of the sales came from investors holding BTC between one and two years. The second and third largest spending waves were in March 2024 ($6.11 billion) and February 2025 ($5.42 billion). During this period, the most active group was investors holding BTC for two to three years. The fourth largest spending was in November 2024, with $4.39 billion spent by investors holding BTC for three to five years. 

Especially, Bitcoin holders with three to five years of holding dominated this period. Their activity alone was measured at $2.16 billion, the second largest sale in the cycle. The largest sale was $6 billion in March 2024. Meanwhile, those holding BTC for two to three years spent $1.41 billion, and holders between one and two years spent $450 million. Previous major movements occurred in October, November 2024, and February 2025, where similar selling waves followed price increases. 

Old wallet holders are either taking profits or repositioning. CoinMarketCap data shows the price dropped over 4% from $111,970. At the time of writing, BTC was around $107,540, down about 3% weekly and 1.2% daily. If the aim is to change strategy, BTC may consolidate further. However, if it’s profit-taking, the price could fall below $106,000. 

***NOT INVESTMENT ADVICE ***

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Old Bitcoin Wallets Are Moving: How Will the Market Be Affected?  appeared first on Coin Engineer.