Last week's sell-off produced the largest realized loss in bitcoin's history, marking a dramatic capitulation that wiped out billions in holder value. Bitcoin slid from roughly $70,000 to $60,000 on Feb. 5, and on-chain analytics provider Glassnode reports the Entity-Adjusted Realized Loss hit $3.2 billion. That measure counts the USD value of coins moved and sold at a loss while excluding internal transfers between addresses controlled by the same entity. The $3.2 billion figure tops previous extremes, eclipsing the roughly $2.7 billion realized during the 2022 LUNA collapse. Data platform Checkonchain characterized last week’s rout as “a textbook capitulation event,” noting it unfolded quickly, on heavy volume, and crystallized losses among “lowest-conviction” holders — investors who are likeliest to sell during panic. Daily net losses during the plunge exceeded $1.5 billion, making this the single-largest absolute USD loss ever recorded on the bitcoin network. Historically, capitulation events of this scale can coincide with or precede market lows as weaker hands are flushed out, which some analysts view as an early sign of bottom formation. Bitcoin has since recovered off the intraday low and was trading around $67,600 at the time of reporting. Traders and long-term holders will be watching whether the price stabilizes and on-chain indicators confirm a sustainable reversal. Read more AI-generated news on: undefined/news

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