Bitcoin has recorded a staggering $2.3 billion in losses, marking one of the most significant capitulation events in its history. This development comes as short-term holders sell during the downturn cast by wider market pressures.

Analyst IT Tech reported that Bitcoin’s average realized losses over a week escalated to this monumental figure, identifying it as a capitulation event on CryptoQuant. According to the analysis, this is comparable to previous major declines, including the crash in 2021 as well as the 2022 Luna/FTX collapse.

“This ranks among the top 3-5 largest loss events in recorded Bitcoin history,” asserted IT Tech. “Very few moments in its past have demonstrated such intense capitulation.”

Currently, Bitcoin is trading around $66,600, having plummeted nearly 50% from its all-time peak of over $126,000 in October.

Potential for Continued Decline

IT Tech noted that although severe dips have historically led to rebounds, this could represent only the onset of a prolonged decline period. The analysts expect further fluctuations before achieving true stabilization in Bitcoin’s valuation.

Ruck from LVRG Research added that the recent sharp decline is a reflection of panic among short-term holders amidst significant macroeconomic shifts, predicting possible supports between $40,000 and $60,000.

For additional insights, CryptoQuant highlighted that $55,000 is Bitcoin’s historically realized price, often linked with bear market bottoms, suggesting the price may fluctuate sideways before any recovery begins.