Reports note that Bitcoin holders suffered big losses as prices fell, and the headline figure is hard to ignore. According to on-chain tracker CryptoQuant approx $4.5 billion in net losses was recorded on January 23.
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That number reflects moved coins that sold at lower prices than when they were purchased. It’s a big transfer from paper pain to real losses.
Realized loss peak
While the dollar figure grabs the attention, the meaning is what matters. Many who bought late in the upswing are choosing to sell rather than sustain further declines. That behavior shows frustration.
Reports say the Net Realized Profit and Loss metric reconciles this by comparing sales prices to purchase prices, and a negative reading of this magnitude signals a wave of capitulation.
Some larger long-term owners have been quieter. Their activity appears muted, while smaller and medium-sized participants go about the daily movements.
According to reports from analysts on CryptoQuant, this mix – silent large holders and active smaller sellers – is common during corrective periods. It doesn’t automatically mean the market is broken; it means sentiment has shifted to caution.
$4.5 billion in realized losses on Bitcoin
“The highest number of realized losses in three years. The last time this happened to Bitcoin, the price was trading at $28,000, after a short correction period that lasted about a year.” – By means of @gaah_im pic.twitter.com/OJ7bbL3RSC
— CryptoQuant.com (@cryptoquant_com) January 26, 2026
Bitcoin price action
Halfway through the week, Bitcoin was trading around the mid-$80,000s, well below the $90,000 mark that some investors had seen as a key level.
Market chatter shows traders keeping an eye on macro cues like the US Federal Reserve and inflation data as guidance.
Volatility hasn’t gone away; it has simply become more tied to broader economic signals than to isolated crypto headlines.
Whale Addresses sometimes seemed to step in and help maintain local price floors. But many traders remain cautious.
Reports note that geopolitical headlines can cause rapid swings, yet the current move looks more like slow earnings processing and repositioning than explosive panic selling.
Activity on spot exchanges and ETF flows was mixed, reflecting the mixed mood in the market.
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Capitulation has happened before
Similar loss peaks were observed in March 2023, when realized losses reached nearly $6 billion, and in November 2022, when losses reached approximately $4.3 billion.
These events were followed by consolidation and eventual recovery. Based on reports from analytics firms and market observers, spikes in realized losses can mark the late stages of selling pressure, after which the market sometimes finds a footing.
Featured image from Pexel, chart from TradingView