Bitcoin’s selling pressure from short-term holders reached an extreme in early February, triggering a market flush. Data shows realized losses have since cooled significantly, but substantial unrealized losses persist among whale-sized recent entrants, indicating the market is stabilizing but remains fragile.
Selling pressure across Bitcoin’s short-term holders reached an extreme in early February. This triggered a capitulation-style flush in BTC’s broader market structure.
The Entity-Adjusted Short-Term Holder Net Realized Profit/Loss metric plunged sharply. Bitcoin’s 7-day exponential moving average printed a peak daily loss near $1.24 billion on February 6.
That trough aligned with a sharp negative spike, reflecting rapid loss crystallization across reactive Bitcoin participants. From there, flows began stabilizing as Bitcoin selling pressure gradually cooled.
Loss bars shrank session by session, signaling moderating panic. By February 23, the 7D-EMA improved to -$0.48 billion, marking a 61% reduction in loss intensity.
With realized losses compressing, downside pressure typically loosens. Still, the Entity-Adjusted Short-Term Holder Net Realized Profit/Loss remains negative.
Meanwhile, derivative stress intensified with Funding Rates falling to -0.038%. Liquidations surged by over 450% to $473 million as Open Interest slipped toward $96 billion.
This divergence signals seller exhaustion building gradually. Pressure now appears concentrated within whale-sized recent entrants who accumulated aggressively during Bitcoin’s advance.
Unrealized losses for these whales surged to approximately $32 billion on February 6. Although price has since stabilized modestly, current unrealized losses still hover near $26 billion.
This divergence matters because realized loss intensity is cooling yet a substantial unrealized deficit remains. Market stability now depends on these holders’ willingness to absorb volatility.
