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Bitcoin Faces Historic Capitulation Event with $3.2 Billion in Losses

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TLDR

  • Bitcoin experienced one of its largest capitulation events in history with $3.2 billion in realized losses on February 5, 2026.
  • The massive sell-off led to significant losses for Bitcoin and Ethereum investors, marking one of the worst days in crypto history.
  • Ethereum mirrored Bitcoin’s downturn, suffering a sharp price drop as the broader market faced extreme selling pressure.
  • On-chain data showed that the market realized an average of $2.3 billion in daily losses over the past week.
  • Experts warn that more pain could lie ahead for the crypto market, with predictions of further price declines for both Bitcoin and Ethereum.

The cryptocurrency market experienced one of its most intense capitulation events in history on February 5, 2026. Data from CryptoQuant revealed that investors faced a staggering $3.2 billion in realized losses in just 24 hours. This massive sell-off is among the largest recorded losses, placing the event in the top 3-5 worst loss events ever documented in crypto history.

Bitcoin Suffered a Major Blow

The February 2026 market crash was especially harsh on Bitcoin. According to CryptoQuant, the sell-offs during this period caused Bitcoin investors to lock in a massive loss. The on-chain data shows that Bitcoin holders faced severe financial pain, with billions in unrealized losses turning into realized losses in a single day.

Bitcoin’s price was significantly impacted, dropping to lower levels than many had not expected. The crypto asset saw one of its worst days, as the market faced an extreme level of selling pressure. Investors, many of whom had bought during higher price levels, were forced to sell at a loss.

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Ethereum’s Struggles Mirror Bitcoin’s Downturn

Ethereum, too, faced a severe loss in the February 2026 sell-off. The second-largest cryptocurrency after Bitcoin suffered as the broader market crashed. Ethereum’s price dropped dramatically, as investors were forced to realize losses amid widespread capitulation in the market. Ethereum’s price moved in tandem with Bitcoin’s decline, showing similar patterns of pain for holders.

Despite Ethereum’s resilience in previous years, it did not escape the effects of this capitulation event. Like Bitcoin, Ethereum holders faced the harsh reality of the market’s volatility. With the pressure mounting, Ethereum’s losses became a symbol of the widespread distress in the market.

Is More Pain Ahead for Crypto?

Despite the harsh nature of the February 2026 crash, experts warn that more challenges could lie ahead for cryptocurrency holders. Standard Chartered issued a cautionary note, suggesting that the market is still at risk of further correction. Analysts predict Bitcoin could fall as low as $50,000, with Ethereum possibly reaching levels as low as $1,400.

The macroeconomic environment, coupled with potential ETF outflows, could continue to contribute to a downward trend. Cryptocurrency investors are bracing themselves for more uncertainty, as the market remains volatile and unpredictable.

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Crypto World

Crypto Scam Leader Extradited to China to Face Charges

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Crypto Scam Leader Extradited to China to Face Charges

Li Xiong, a key member of a group that allegedly helped crypto scam rings in Asia to move money, has been extradited from Cambodia to China, where he will face fraud and money laundering charges, according to Hong Kong-based news outlet Ta Kung Wen Wei.

On April 1, with strong support from the relevant authorities in Cambodia, a task force sent by China’s Ministry of Public Security successfully escorted Li Xiong, a core key member of the Chen Zhi criminal syndicate, back to China from Phnom Penh, Cambodia,” it said on Wednesday, citing a statement from China’s Ministry of Public Security on WeChat.

Xiong previously served as chairman of Huione Group, an alleged criminal organization that served scam centers in Cambodia that carried out “pig butchering” scams and other investment schemes to steal crypto from victims around the world. 

Huione Group was responsible for one of the largest illicit online marketplaces in the world, handling over $89 billion in cryptoassets.

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Source: Jacob in Cambodia

His extradition comes three months after the arrest of Chen Zhi, the head of Prince Group, which operates Huione Group. In October, it was reported that the US Department of Justice seized 127,271 Bitcoin (BTC) worth more than $15 billion from Zhi.

Related: Hong Kong retiree loses $840K in triple ‘crypto expert’ scam

The US Treasury Department’s Financial Crimes Enforcement Network directed US banks to cut payments and accounts tied to the Huione Group in October.

Authorities ask other Huione members to surrender

Ta Kung Wen Wei noted that several other members of Zhi’s criminal syndicate have been brought to justice “one after another,” citing comments from Chinese public officials.

“Public security authorities will continue to intensify efforts to capture fugitives,” it said, adding:

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“At the same time, they once again warn criminals to recognize the situation, stop before it is too late, surrender as soon as possible, and strive for lenient treatment.”

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