Bitcoin records $2.3B losses in capitulation event

Bitcoin has recorded $2.3 billion in seven-day average realised net losses, marking one of the largest capitulation events in the cryptocurrency’s history, according to analysis from CryptoQuant contributor IT Tech.

The analyst said the scale of losses places the current downturn among the top three to five loss events ever recorded, rivaling the 2021 crash, the 2022 Terra and FTX collapse, and the mid-2024 correction.

“This puts us in the top 3-5 loss events ever recorded,”

IT Tech wrote, adding:

“Only a handful of moments in Bitcoin's history have seen this level of capitulation.”

Bitcoin has fallen nearly 50% from its October all-time high above $126,000 to trade around $66,600, after briefly dipping to $60,000 earlier this month.

While extreme loss spikes have historically preceded rebounds, IT Tech warned that relief rallies can occur even during prolonged bear markets and that a deeper, slower bleed-out remains possible.

CryptoQuant noted that $55,000 represents Bitcoin’s realised price, a level historically associated with bear market bottoms, though prior cycles saw the asset trade 24% to 30% below that mark before stabilising.

Nick Ruck, director of LVRG Research, said the capitulation reflects intense short-term holder panic and suggested potential support between $40,000 and $60,000, with a durable bottom likely requiring further time and institutional accumulation signals.

At the time of reporting, Bitcoin price was $66,346.33.