Bitcoin Records $3.2B in Losses, Surpassing Luna and FTX Crisis Levels

Bitcoin’s recent downturn did more than just reduce prices; it compelled investors to realize losses at a rate seldom witnessed in the brief history of cryptocurrency.

On-chain analyst Murphy highlighted on Friday that Bitcoin’s entity-adjusted realized loss reached an unprecedented $3.2 billion on February 5, indicating that traders hurried to exit as the market faltered.

Murphy characterized this movement as capitulation, suggesting that the magnitude of loss-taking exceeded what the market experienced during some of its most notorious disruptions.

This occurred as Bitcoin dropped approximately 10% on Friday to around $64,000, marking its lowest point since late 2024 and reversing the momentum that had developed following Donald Trump’s election victory.

February 5 Marks Largest Realized Bitcoin Loss Day On Record, Analyst Says

“Epic-level! A significant wave of loss-taking has emerged,” the analyst remarked in a post translated from Chinese.

史诗级！天量亏损盘出现！
2月5日，BTC实体调整后的已实现亏损达到创历史记录的32亿美元。看过了这个，那前面的都是小卡拉米。
无论是Luna暴雷、FTX倒闭还是312/519这些黑天鹅事件，都未曾引发如此大规模的亏损出逃。
2025.11.21… https://t.co/7iAlTP83mp pic.twitter.com/Sl99GUgvNp

— Murphy (@Murphychen888) February 6, 2026

“On February 5th, the realized loss (after entity adjustment) of BTC reached a historic record high of $3.2 billion. After seeing this number, everything that came before is just small potatoes.”

He elaborated, citing crisis moments that he claimed did not lead to a similar level of loss-taking. “Whether it was the Luna collapse, the FTX bankruptcy, or the 312/519 black swan events — none of them ever triggered loss-taking on this massive scale.”

Murphy also referenced a previous data anomaly that some traders might mention when comparing extremes. “There was also one instance on 2025.11.21, but that time Coinbase reorganized wallet data afterwards and the figures were adjusted. This time, though… it really looks like genuine panic.”

Bitcoin slid more than 10% toward $64,000 Friday, hitting its weakest level since late 2024 as a broad risk asset selloff erased post-election crypto gains.#CryptoMarketUpdate #AsiaMarketOpen https://t.co/MUsoiSrxbe

— Cryptonews.com (@cryptonews) February 6, 2026

He described the February 5 movement as atypical because the market unraveled without a singular headline shock.

Realized Loss Metrics Watched Closely For Signs Of Seller Exhaustion

Murphy also countered critics who advocate for measuring realized losses in Bitcoin terms.

“(Some people believe we should use BTC-denominated statistics — this is a misunderstanding. The price of BTC is dynamic; only by measuring in USD value can we truly gauge the level of panic selling pressure the market was under at that moment.)”

This assertion comes as traders discuss what the washout signifies for the next phase of the cycle, particularly as significant price fluctuations can prompt forced selling and accelerate realized losses.

Markets frequently monitor this metric for indications of whether sellers have depleted their resources or if fear still has room to escalate.

Michael Burry has introduced a new layer of anxiety. The founder of Scion Asset Management, who gained notoriety for predicting the 2008 housing crisis, shared a Bitcoin chart on X that compared the current decline to the crash from 2021 to 2022, suggesting Bitcoin could drop into the low $50,000s before establishing a more stable bottom.

In that post early Thursday, Burry highlighted the trajectory of the decline from Bitcoin’s October peak of $126,000 to around $70,000, and compared it to the late 2021 to mid-2022 drop, when Bitcoin fell from approximately $35,000 to below $20,000.

The post Bitcoin Logs $3.2B In Loss-Taking Wave, Beating Luna And FTX-Era Shock Levels appeared first on Cryptonews.