Bitcoin experienced a significant $889 million in realized losses on February 4, 2026, marking the highest daily loss since November 2022. This surge in losses is attributed to forced selling, which has led to the second-largest spike in Bitcoin's capitulation metric in two years, according to data from Glassnode. The market stress is causing traders to adjust their positions amid fears of further declines. The Entity-Adjusted Realized Loss metric, which tracks Bitcoin sold at a loss, underscores the growing uncertainty in the market. The sharp increase in realized losses reflects heightened volatility and de-risking, as investors recalibrate their strategies to mitigate exposure to Bitcoin's price fluctuations.