Bitcoin is experiencing a significant market capitulation, marked by the second-largest spike in forced selling in two years. The cryptocurrency's price has fallen to a range of $66,900 to $69,700 amid heavy long liquidations, resulting in daily losses exceeding $1.26 billion, according to Glassnode. This event underscores market instability and has impacted institutional demand and asset prices. The immediate market effect has been severe, with Bitcoin dropping over 11%. The spot price decrease has affected short-term holders, and institutional demand has deteriorated as netflows softened sharply. Treasury outflows indicate a lack of fresh capital absorption, increasing market volatility. This event is compared to past downturns, such as those in October 2025 and May 2022, though it lacks the complete capitulation seen during the Terra crisis.