With the sharp price drop it experienced at the beginning of February, Bitcoin caused losses at a level rarely seen in transaction history. This fluctuation in the cryptocurrency market caused many investors to sell their assets at a loss. On-chain expert who analyzes the buying and selling of digital assets Murphy ChenHe stated that Bitcoin broke a record with a realized loss of $3.2 billion on February 5. Experts point out that this movement in the Bitcoin market is a larger wave than the major crises experienced in the past.
Record Levels in Realized Losses
Bitcoin price dropped to around $60,000 on February 5. This was recorded as one of the lowest levels seen since late 2024. Many investors turned to closing their positions with rapid sales.
Murphy emphasized the magnitude of the recent decline in the cryptocurrency world and stated that movements of similar magnitude had not been seen in previous turbulent periods.
“BTC’s realized loss reached a level higher on February 5 than any other major shock in the past; the Luna crash, the FTX crash, or other extraordinary declines in the markets did not result in a loss of this magnitude,” Murphy said.
Bitcoin’s recent price movement also caused the market momentum to return after Donald Trump’s election victory.
Panic Selling and Data Discussions
Murphy evaluates this period as a “panic selling wave”. A significant portion of investors risked significant losses by exiting their assets in the hours following the price drop.
Murphy pointed out an exception that was previously seen in November 2025 but was later changed with the data regulation in the stock markets, and stated that this time the decline in prices was completely realistic and caused a high amount of panic.
Various opinions came to the fore regarding the interpretation of metrics. Murphy is of the opinion that measurements in dollars rather than Bitcoin are more accurate in understanding the real reaction of the market. He stated that the volatility in Bitcoin price should be analyzed in dollar terms to accurately reflect panic selling pressure.
Future Expectations and Market Comments
Following this development, discussions on possible future scenarios intensified in the market. It is noted that while large price changes force some investors to sell automatically, such waves further increase the selling pressure. The amount of loss incurred is closely monitored to gauge whether the market has bottomed.
Famous fund manager Michael Burry also shared his opinion on the withdrawal in Bitcoin. Burry, who previously predicted the 2008 financial crisis, referred to charts in his social media post indicating that Bitcoin could fall to the low $50,000 level as a result of such harsh corrections.
According to Burry’s comparison, there are striking similarities between the decline experienced by Bitcoin from late 2021 to mid-2022 and its current price losses. Such analyzes show that market players are considering different possibilities for future price movements.
