Bitcoin Realized Loss Hits $3.2B, Largest Ever; Capitulation Signals Bear Market Bottom

Bitcoin's largest-ever realized loss materialized during last week's rout, with the Entity-Adjusted Realized Loss reaching $3.2 billion as prices fell from $70,000 to $60,000 on February 5, 2026. This capitulation surpassed the $2.7 billion loss during the Terra (LUNA) collapse in 2022. Data from Checkonchain indicates a textbook capitulation event, with rapid, heavy-volume selling that crystallized losses from the lowest-conviction holders. Daily net outflows exceeded $1.5 billion, marking the most significant absolute USD loss ever recorded in the network. With bitcoin trading around $67,600 as of February 12, 2026, the signs of a bear market bottom are growing.