Bitcoin (BTC) witnessed a sharp decline this week, plunging from Monday’s high of $96,500 to a three-month low of $86,050 on Tuesday, February 25. The sell-off triggered panic among short-term holders, who rushed to offload their holdings, realizing losses amounting to $1.7 billion—the highest since August 2024, when losses exceeded $2.4 billion.
According to data from CryptoQuant, shared by Head of Research Julio Moreno on Wednesday, February 26, this mass capitulation underscores growing anxiety in the market. Crypto analyst Miles Deutscher echoed similar sentiments, describing the event as another major “capitulation” signal amid Bitcoin’s downward trajectory.
Bitcoin holders realized today the largest loss since August 2024: $1.7 billion. pic.twitter.com/ATMpXeqHGp
— Julio Moreno (@jjcmoreno) February 26, 2025
“$BTC holders sold for a total of $1.73 billion in realized losses yesterday, which is the most since August 2024,” Deutscher noted in a post on X. “Just another metric that adds to the capitulation signals on this move lower for $BTC.”
Adding to the bearish sentiment, the Fear and Greed Index—a key metric that gauges investor sentiment—plummeted to its lowest level since October 2024. Deutscher pointed out that while fear dominates the market, such conditions often set the stage for a potential price bottom.
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
However, not everyone believes that Bitcoin has reached its final capitulation point. Standard Chartered’s Global Head of Digital Asset Research, Geoffrey Kendrick, cautioned that a larger correction could still be on the horizon. In a note to investors, Kendrick highlighted that Bitcoin ETF outflows reached nearly $1 billion on Monday alone, a troubling sign that could indicate further declines.
“I calculate that net ETF purchases since the US election are now running a loss of around $1.3 billion,” Kendrick wrote. “The average purchase price since then is $97K. These types of losses rarely end well, and I still think the big capitulation is yet to come.”
Also Read: BlackRock Moves $204M in Bitcoin & Ethereum to Coinbase
With analysts divided on Bitcoin’s next move, Glassnode has identified key support levels between $71,000 and $72,000. Meanwhile, as of writing, Bitcoin is trading at $86,200, hovering just above its recent low of $86,050. Whether the market stabilizes or experiences another leg downward 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 Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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