Bitcoin’s sharp decline last week resulted in the largest realized loss ever recorded on the network, as the price slid from $70,000 to $60,000 on Feb. 5.

On-chain figures from Glassnode indicate that Entity-Adjusted Realized Loss surged to $3.2 billion. This metric captures the U.S. dollar value of coins sold at a loss — meaning below their acquisition price — while filtering out transfers between wallets controlled by the same entity to avoid inflating the data.

The magnitude of the sell-off surpassed previous peaks, including the $2.7 billion in realized losses seen during the 2022 collapse of Terra (LUNA), one of the most turbulent periods in crypto market history.

Analytics platform Checkonchain said the episode displayed the characteristics of a textbook capitulation event: a swift downturn, elevated trading volume, and heavy losses concentrated among weaker hands. At the height of the rout, daily net realized losses exceeded $1.5 billion.

In absolute dollar terms, the event represents the largest loss ever crystallized on the Bitcoin network. Historically, such extreme spikes in realized losses have often occurred near the latter stages of bear markets and, at times, preceded durable price bottoms.

As of publication, Bitcoin had recovered to around $67,600, retracing part of last week’s decline.