Bitcoin Realized Loss Nears $900 Million, Highest Since FTX Crash

Bitcoin’s price dropped below $70,000 in early trading, triggering a sharp increase in investor losses. On-chain analytics show that the Bitcoin realized loss has hit $889 million, the highest level since the November 2022 crash that followed the collapse of FTX according to TradingView. This metric, which measures the total value of losses realized through transactions, has surged as traders offload their holdings amid the price decline.

The price decline has led to a significant drop in the broader crypto market. XRP, for instance, fell 17% in a single day, the steepest drop since 2025, as leveraged long positions worth $46 million were wiped out according to CryptoNews. The selloff was further amplified by deteriorating market conditions, with Bitcoin’s slide to $64,000 triggering a record $3.2 billion in realized losses according to TradingView.

Bitcoin’s plunge has also had a ripple effect on related assets. Silver fell 15%, gold dropped more than 2%, and software stocks and major U.S. equity indexes also saw declines according to CoinDesk. The market’s volatility has led to a wave of forced liquidations, as automated stop-loss orders and margin calls trigger further selling according to CryptoNews.

What Caused the Sharp Selloff?

The drop in Bitcoin’s price is being attributed to a combination of factors, including deteriorating liquidity and a lack of major positive catalysts. Adrian Fritz, chief investment strategist at 21Shares, noted that thin liquidity in the market makes it easy for even modest selling pressure to trigger large price swings according to CoinDesk. This dynamic, in turn, leads to further liquidations and accelerates the selloff.

The price fall has also been exacerbated by the liquidation of leveraged positions across derivatives markets. Data from CoinGlass showed that $46 million in XRP derivatives liquidations occurred within a 24-hour period according to CryptoNews. Most of these liquidations were in bullish positions, indicating that traders who had bet on a price increase are now being forced to close their positions at a loss.

How Are Institutional and Retail Investors Reacting?

Institutional flows into XRP ETFs have remained positive despite the price collapse. Since launching in November 2025, XRP spot ETFs have posted inflows on all but four trading days, with net inflows exceeding $1.2 billion according to CryptoNews. This resilience contrasts with Bitcoin ETFs, which recorded $545 million in outflows on Wednesday alone according to CryptoNews.

The selloff has also had a severe impact on corporate holders of Bitcoin. MicroStrategy’s fourth-quarter net loss widened to $12.4 billion as the price of Bitcoin fell from about $120,000 to $89,000 during the quarter according to CoinDesk. The company, which holds 713,502 BTC, has seen its stock price fall 68% over the past year according to CoinDesk.