Bitcoin records one of the largest losses in the history of cryptocurrency

Bitcoin BTC $67,507.06 Mezo Wrapped BTC 1.71% Market capitalization $38.14 million VOL. 24 hours $1.76 billion is once again recording large-scale on-chain losses comparable to the Luna/UST collapse in 2022, but this time at a much higher price. According to analyst Axel Adler Jr., Net Realized Profit/Loss with a 7-day average dropped to $ 1.99 billion on February 7, and partially recovered to -1.73 billion on February 10. This is the second deepest negative value in history after June 2022, when the metric reached -2.24 billion.

The analyst emphasizes that the key factor is the duration of the pressure. The indicator has been below $ 1.7 billion for five days in a row, which forms a stable cluster of sales. This dynamic is more like a capitulation of market participants than a short-term shock. This means that investors are massively selling coins below their cost, and the market is gradually «digesting» these volumes.

Additionally, the Realized Loss (7DMA) metric showed an increase in realized losses to about $ 2.3 billion on February 7, with a holding near this level until February 10. At the same time, a daily loss of $ 6.05 billion was recorded on February 5, the second largest in the history of bitcoin. Adler explains that weekly smoothing understates the peak stress: in 2022, one-day losses were three times higher than the average.

The context of the current situation is significantly different from 2022. Back then, similar losses occurred at a price of about $ 19 thousand, while now they are recorded at about $ 67 thousand after a pullback from $ 125 thousand. The analyst interprets this as a cleansing of late buyers in the current cycle, not a systemic crisis. According to him, this is the capitulation of those who bought at the local top, rather than a fundamental loss of value of the network.

Among the signs of a possible reversal, Adler calls the return of Net Realized Profit/Loss above zero for several weeks in a row and a decrease in Realized Loss below $ 1 billion. He considers a price drop below 60 thousand to be a risk: if it is accompanied by a new surge in losses, the correction could turn into a full-scale surrender. At the time of publication, bitcoin was trading at $ 67,924.