The digital asset market faced one of its darkest days this February 13, as Bitcoin realized losses were confirmed to have reached 2.3 billion dollars. According to CryptoQuant analyst IT Tech, this massive capitulation event rivals the 2021 crash, marking a milestone of panic among retail holders throughout the globe.
This figure places the current episode among the five most significant loss events ever recorded in the history of the blockchain, even surpassing previous crises. Since the asset has retreated nearly fifty percent from its October high, selling pressure has forced investors to liquidate their positions at extremely low price levels today.
Institutional and retail panic drags market valuation toward historic lows
Despite extreme loss spikes often preceding technical rebounds, the current environment suggests a slow and deep bleed-out for the coming months. Although the price attempted to reclaim the 70,000 dollar zone recently, experts warn that relief rallies are common during prolonged bear markets, therefore operational caution is now imperative for all.
For CryptoQuant analysts, the realized price of 55,000 dollars is the key indicator that historically marks financial cycle bottoms. If the asset follows patterns from previous years, the value could stabilize temporarily after a prolonged sideways movement, allowing the supply to be absorbed by entities seeking value amidst the current desolation.
Nick Ruck, director of LVRG Research, noted that the current capitulation reflects a washout of weak hands driven by global macroeconomic pressures. Upon entering bear market territory, the market requires signals of miner stabilization to consolidate a floor, thus avoiding further drops toward the critical support range that many place between 40,000 and 60,000 dollars.
Can the entry of institutional capital stop the current financial bleeding?
On the other hand, the lack of a full capitulation from long-term holders suggests that the adjustment process has not yet ended. Historically, definitive bottoms form when this group endures losses of up to forty percent, which represents a phase of maximum financial despair that precedes the true recovery of digital ecosystem prices in the future.
Likewise, the latent volatility has caused many short-term traders to abandon their strategies for fear of further forced liquidations. Therefore, the need for a massive entry of institutional capital is evident, as only then can the negative inertia that dominates order books in major exchanges be countered effectively during this year.
Looking ahead, the market will continue to closely monitor the ability of buyers to defend the 55,000 dollar level in the coming weeks. Stabilization of network indicators is expected to provide the framework necessary for a rebound, ending this historic capitulation event that has redefined investment projections for the year 2026.
