TLDR:
- Bitcoin whales and sharks recorded over $30.9B in losses, averaging $337M daily in Q1 2026.
- Early February saw peak capitulation, with realized losses hitting $1.6B in a single day.
- Large holders led the sell-off, showing institutional-level distribution during market stress.
- Market stabilized post-February, with reduced losses and BTC trading within a tight range.
Bitcoin’s largest holders recorded steep realized losses during the first quarter of 2026, reflecting sustained selling pressure across major wallet groups. On-chain data shows whales and sharks collectively locked in over $30.9 billion in losses during the period.
Heavy Losses Driven by Early February Sell-Off
Glassnode data shared in a recent post on X by Coin Bureau pointed to an intense wave of selling in early February.
During this period, realized losses surged to nearly $1.6 billion in a single day. At the same time, Bitcoin’s price dropped sharply, signaling a coordinated market reaction.
Large holders played a central role in this movement. Wallets holding between 100 and 1,000 BTC recorded average daily losses of $188.5 million.
Meanwhile, wallets with 1,000 to 10,000 BTC posted daily losses of $147.5 million. Together, these groups accounted for a combined daily average of $337 million in realized losses.
This pattern suggests that selling activity was not limited to smaller participants. Instead, it involved entities often associated with institutional capital or long-term investors. The scale of these losses points to a broad liquidation phase rather than isolated exits.
At the same time, long-term holders continued to realize losses of nearly $200 million per day. This added further pressure to the market during the quarter. The combined effect marked the heaviest realized losses since the 2022 bear market.
Market Stabilizes as Selling Pressure Eases
Following the sharp downturn in early February, market conditions began to shift. Realized losses dropped into a lower range, typically between $200 million and $600 million per day. This change coincided with Bitcoin’s price stabilizing between $65,000 and $75,000.
As the weeks progressed, the market entered a consolidation phase. Price movements became more controlled, while large-scale panic selling appeared to subside. However, smaller spikes in realized losses continued to appear throughout March.
These repeated spikes reflected ongoing exits from weaker market participants. At the same time, price action remained choppy, with no clear directional trend. Both buyers and sellers appeared active, yet neither side gained sustained control.
By the end of March, realized losses had settled at moderate levels, ranging between $300 million and $500 million. This steady pattern suggested a more balanced environment compared to the earlier volatility.
The data shows that extreme selling conditions eased after the initial shock. Still, the presence of continued losses indicates that market confidence has not fully returned.
The absence of another major spike suggests a pause in aggressive selling rather than a complete shift in sentiment.
Overall, the first quarter of 2026 reflects a transition from heavy liquidation to a more stable but uncertain market phase.