Bitcoin’s $3.2B Loss-Taking Wave Surpasses Luna and FTX-Era Shock Levels
Bitcoin just weathered a sell-off so massive it makes previous crypto catastrophes look like minor blips.
The Scale of the Shakeout
Investors dumped positions at a staggering pace, locking in losses that eclipsed the panic seen during the collapses of Terra's Luna and the FTX exchange. The sheer volume of this capitulation signals a market-clearing event of historic proportions.
What the Numbers Really Mean
That $3.2 billion figure isn't just a big number—it's a psychological benchmark. It represents a wave of fear so potent it surpassed two of the most traumatic moments in recent crypto history. This isn't mere profit-taking; it's a full-blown purge of weak hands.
A Bullish Flush?
Paradoxically, such extreme loss realization often sets the stage for the next leg up. It transfers assets from impatient sellers to steadfast holders, effectively resetting the market's cost basis. The street's wisdom—buy when there's blood—gets tested in moments like these.
The market just endured a stress test that would break lesser assets, proving once again that crypto's volatility isn't a bug, but a feature for those who understand the game. After all, on Wall Street, they call this 'risk management.' In crypto, we just call it Tuesday.
Feb. 5 Marks Largest Realized Bitcoin Loss Day On Record, Analyst Says
“Epic-level! A massive loss-taking wave has appeared,” the analyst said 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
“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 went further, listing crisis moments that he said failed to produce a comparable flush. “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 pointed to a past data wrinkle that some traders may cite 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
He described the Feb. 5 move as unusual because the market did not need a single headline shock to unravel.
Realized Loss Metrics Watched Closely For Signs Of Seller Exhaustion
Murphy also pushed back on critics who prefer measuring realized losses in Bitcoin terms.
“(Some people think 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.)”
The claim lands as traders debate what the washout means for the next phase of the cycle, especially as large swings in price can trigger forced selling and accelerate realized losses.
Markets often watch this metric for clues on whether sellers have exhausted themselves, or whether fear still has room to run.
Michael Burry has added a fresh dose of nerves. The Scion Asset Management founder, who ROSE to fame predicting the 2008 housing crisis, shared a Bitcoin chart on X that compared the current pullback to the 2021 to 2022 crash, implying Bitcoin could slide into the low $50,000s before it finds a more durable bottom.
In that post early Thursday, Burry pointed to the shape of the decline from Bitcoin’s October high of $126,000 to around $70,000, and matched it against the late 2021 to mid-2022 plunge, when Bitcoin slid from roughly $35,000 to below $20,000.
