Bitcoin has recorded about $2.3 billion in realized losses over the past week, a move one analyst described as among the biggest capitulation events in the asset’s history.
CryptoQuant analyst IT Tech wrote that Bitcoin’s seven-day average realized net losses reached $2.3 billion, placing the current sell-off among the “top 3-5 loss events ever recorded.”
IT Tech wrote:
“This is one of the largest capitulation events in BTC history, rivaling the 2021 crash, 2022 Luna/FTX collapse, and mid-2024 correction.”
Drawdown from the October high
Bitcoin is down nearly 50% from an all-time high above $126,000 in October, and was trading around $66,600 at the time of the report.
The move followed a drop to about $60,000 on Feb. 6.
Analyst warns of a slow bleed-out
IT Tech said previous “extreme loss spikes” have often been followed by rebounds, noting bitcoin briefly rallied above $70,000 on Tuesday.
IT Tech added:
“This could still be the beginning of a deep and slow bleed-out. Relief rallies happen even in prolonged bear markets.”
Realized price and possible support levels
CryptoQuant said $55,000 marks Bitcoin’s realized price, which it described as “historically tied to bear market bottoms.”
CryptoQuant stated:
“Past cycles saw BTC trade 24% to 30% below this level before stabilizing.”
Nick Ruck, director of LVRG Research, said the capitulation reflects “intense short-term holder panic and washout” amid macro pressure.
Ruck said:
“Reaching the full bottom may still require additional time and signals from metrics like sustained institutional buying or miner stabilization.”
Ruck pointed to potential support in the $40,000 to $60,000 range.
