Realized Losses Near $1B In 24 Hours On Bitcoin Network

In the space of 24 hours, bitcoin recorded nearly 900 million dollars of realized losses, a level never seen since the collapse of FTX in 2022. This chilling figure, from on-chain data, illustrates much more than a simple drop, but marks a brutal turning point in investor sentiment. Such a massive and sudden wave of loss-making sales signals a new phase of capitulation, revealing the persistent fragility of a market still far from regaining its balance.

A massive capitulation

While the flagship crypto has risen above $70,000, the latest data shared by Glassnode show a level of realized losses on the Bitcoin network not seen since the FTX debacle.

On February 6, investors recorded a total daily loss of nearly 889 million dollars, a figure adjusted to exclude internal wallet transfers and retain only actual losses between distinct entities.

These figures translate into a massive capitulation by many investors, especially those who had accumulated bitcoin at higher price levels and who preferred to liquidate their positions in panic. To better grasp the extent of this correction, here are the main points revealed by the available data :

• The total amount of realized losses : approximately 889 million dollars in 24 hours, according to the 7-day moving average ;

• The highest level recorded since November 2022, during the FTX collapse ;

• The source of the data : the Entity-Adjusted Realized Loss indicator from Glassnode excludes internal wallet movements ;

• The nature of the losses : BTC sales at a loss by investors yielding to market pressure ;

• The direct consequence: the strengthening of the downward spiral, aggravated by a drop in the BTC price on the spot market.

This dynamic suggests a return of panic in the crypto market, triggered not by an external event, but by structural fatigue of investors facing a market recovery that is slow to materialize.

An extreme climate of fear fuels market instability

Beyond realized losses, data from the Bitcoin Fear & Greed Index confirm the extreme tension state in the market. The index, which usually oscillates between 0 (extreme fear) and 100 (extreme greed), has dropped to levels close to 9 according to several analysts.

This threshold reflects a shift toward a phase of massive disengagement, often triggered by a loss of bearings amid price volatility. Thus, when the index reaches such levels, it reflects irrational fear pushing investors to part with their assets under unfavorable conditions.

Such a climate of distrust is not new, but its current intensity echoes the darkest periods of the 2022 bear market. Unlike a drop caused by a brutal external event, like the FTX case or the Terra Luna bankruptcy, this wave of sales seems this time fueled by a misalignment between bullish expectations and contradictory technical signals, creating persistent instability. Volatility intensifies in a context where hopes for a rapid recovery seem increasingly distant.