The cryptocurrency market is reeling from one of the most violent capitulation events in its history.
On-chain data confirms that Feb. 5 will go down as a historic day of pain for digital asset holders.
According to analytics firm CryptoQuant, investors locked in a staggering $3.2 billion in realized losses in a single 24-hour period.
A major capitulation event
The metric tracks the net dollar value of all coins moved on-chain compared to the price at which they were last moved.
The massive red bars indicate periods where investors are predominantly selling at a loss.
Over the last week, the market has realized an average of $2.3 billion in losses every single day.
As noted by the analyst, this magnitude places the current crash in the "top 3-5 loss events ever recorded."
The chart allows us to compare the 2026 spike against Bitcoin's most infamous crashes.
May 2021 (the China ban) is the tallest red spike on the chart. This occurred when Bitcoin dropped from $60,000 to $30,999 following China's mining ban.
The Terra/Luna & 3AC Collapse was the second cluster of massive red bars. This was a credit crisis that forced institutional giants to liquidate assets at depressed prices.
The FTX explosion marked yet another wider spike. The psychological capitulation was extreme, with Bitcoin collapsing to just $15,000.
The February 2026 event is visually comparable to the June 2022 deleveraging event.
More pain?
Despite the severity of the capitulation, the worst might not be over for members of the cryptocurrency community. Standard Chartered has issued a cautionary note to cryptocurrency investors, warning that the market is poised for a significant correction.
Standard Chartered believes Bitcoin could slide as low as $50,000, with Ether potentially tumbling to $1,400.
Kendrick argues that the macro environment is flashing warning signs. The softening U.S. economy, delayed risk cuts, and ETF outflows could jointly contribute to lower cryptocurrency prices.
Vladislav Sopov
Dan Burgin