Bitcoin (BTC) experienced a sharp decline this week, plummeting from a high of $96,500 on Monday, February 24, to a three-month low of $86,050 on Tuesday, February 25. This steep drop triggered a wave of panic selling among short-term holders, who collectively realized losses of $1.7 billion—the highest since August 2024, when losses surpassed $2.4 billion, according to CryptoQuant data shared by Head of Research Julio Moreno.
Bitcoin holders realized today the largest loss since August 2024: $1.7 billion. pic.twitter.com/ATMpXeqHGp
— Julio Moreno (@jjcmoreno) February 26, 2025
Capitulation Signals Strengthen
Crypto analyst Miles Deutscher highlighted that the surge in realized losses signified another “capitulation” moment for Bitcoin, reinforcing the bearish sentiment gripping the market.
“$BTC holders sold for a total of $1.73 billion in realized losses yesterday, which is the most since August 2024. Just another metric that adds to the capitulation signals on this move lower for $BTC,” Deutscher posted on X (formerly Twitter).
The Crypto Fear and Greed Index just flashed its lowest reading since the October lows last year.
— Miles Deutscher (@milesdeutscher) February 26, 2025
People are finally getting nervous again. Believe it or not, that's exactly what we need to eventually form a bottom. pic.twitter.com/Pb8eeNwcEx
Deutscher further noted that the crypto Fear and Greed Index had plunged to its lowest level since October 2024, signaling rising fear among investors. However, he maintained that such sentiment was crucial for establishing a market bottom.
More Pain Ahead?
While some traders view the downturn as a potential buying opportunity, Standard Chartered’s Global Head of Digital Asset Research, Geoffrey Kendrick, warned that the worst may not be over.
Kendrick, in a note to investors on Tuesday, February 26, pointed to significant outflows from Bitcoin ETFs, which recorded nearly $1 billion in exits on Monday alone. He estimated that net ETF purchases since the U.S. election were running at a $1.3 billion loss, with the average purchase price at $97,000.
“These types of losses rarely end well, and I still think the big capitulation is yet to come,” Kendrick cautioned, advising investors to remain patient before entering the market.
Key Support Levels to Watch
As Bitcoin struggles to regain stability, on-chain analytics firm Glassnode has identified a crucial support zone between $71,000 and $72,000. If the selling pressure continues, BTC could test these levels in the coming weeks.
Also Read: GameStop Urged to Invest $5 Billion in Bitcoin – A Bold Move for Financial Growth?
At the time of writing, Bitcoin is trading at $86,200, hovering near its local low. Whether this marks the bottom or if further capitulation is on the horizon remains to be seen.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
