Bitcoin ($BTC) is facing an extreme market capitulation. In this respect, Bitcoin ($BTC) has reportedly lost a total amount of nearly $4.5B in terms of realized losses. As per the data from the CryptoQuant analyst, this marks the biggest capitulation over the past 3 years. Hence, the downturn underscores a growing selling pressure while the traders are giving up amid the volatile conditions.
$4.5 Billion in Realized Loss on Bitcoin“Highest amount of realized losses in three years. The last time this occurred in Bitcoin, the price was trading at $28,000 after a brief correction period that lasted about a year.” – By @gaah_im pic.twitter.com/OJ7bbL3RSC
— CryptoQuant.com (@cryptoquant_com) January 26, 2026
Bitcoin’s Realized Losses Hit $4.5B as Capitulation Reaches 3-Year Peak
Based on the latest market data, a staggering $4.5B has left the Bitcoin ($BTC) market, indicating the peak capitulation over 3 years. The last time a similarly massive realized loss took place was when the leading cryptocurrency hit $28,000 following an extended year-long dip. Currently, with $BTC changing hands near $89,200, the extent of losses denotes the intensity of the present market sentiment as well as the likely implications for upcoming price movements.
The Net Realized Profit and Loss (NRPL) indicator explains the depth of the ongoing market event. In this respect, the realized loss of up to $4.5B occurs at a time when the investors who purchased $BTC at higher price levels are quitting positions while facing losses. In line with the historical data, such capitulations have often paved the way for market bottoms while long-term holders start consolidating their positions, and weak hands give up ultimately.
Traders Await Clarity over Possible Recovery or Prolonged Correction
According to the CryptoQuant analyst, the loss of $4.5B is more than a statistical anomaly as it presents the market psychology during wide-scale volatility. Additionally, capitulation events like this often point toward seller exhaustion, leading toad likely recovery or stabilization. Ultimately, while traders keenly observe the market signals, Bitcoin’s further movement will rely on whether the respective event triggers renewed accumulation or prolongs the correction phase.
