**Short-term Bitcoin Holders React to Market Correction**
In light of the recent market correction, many short-term Bitcoin holders have opted to cut their losses. Specifically, as Bitcoin experienced a significant drop from its peak of $96,500 on Monday, February 24, to a three-month low of $86,050 on Tuesday, February 25, a wave of selling ensued. This rush to sell resulted in a staggering $1.7 billion in realized losses, marking the highest figure since August 2024, when losses exceeded $2.4 billion. This information comes from CryptoQuant data shared by Head of Research Julio Moreno on Wednesday, February 26.
**Bitcoin Realized Profit and Loss | CryptoQuant**
In response to these developments, well-known crypto analyst Miles Deutscher pointed out that this situation signals another instance of “capitulation” in Bitcoin’s recent downward trend. In a previous post on X, Deutscher noted that the crypto Fear and Greed Index had dropped into the fear zone during the market turmoil, reaching its lowest level since October 2024. He remarked, “People are finally getting nervous again. Believe it or not, that’s exactly what we need to eventually form a bottom.”
However, not everyone shares the same optimism. Geoffrey Kendrick, the Global Head of Digital Asset Research at Standard Chartered, has warned that “the big capitulation” is still on the horizon. In a note to investors on Tuesday, February 26, he indicated that he anticipates further outflows from Bitcoin ETFs (exchange-traded funds) following Monday’s record exit of nearly $1 billion. Kendrick calculated that net ETF purchases since the US election have incurred a loss of around $1.3 billion, based on the average purchase price of $97,000 using daily BTC closing prices. He cautioned, “These types of losses rarely end well, and I still think the big capitulation is yet to come,” urging investors to exercise patience before considering buying the dip.
As we look ahead, it remains uncertain where this potential capitulation might lead Bitcoin’s price. Nevertheless, Glassnode has issued a warning that the next significant support level for the asset lies within the $71,000 to $72,000 range. At the time of writing, Bitcoin is trading close to its recent low of $86,050, currently hovering around $86,200.