Bitcoin Losses Reach $4.5 Billion – Highest in Three Years
Key Takeaways
- Bitcoin has recorded a realized loss of $4.5 billion, marking the highest level in three years.
- This significant loss is reminiscent of a similar period following a prolonged adjustment phase for Bitcoin.
- The last time such losses were reported, Bitcoin was priced around $28,000.
- Recent data highlights a notable increase in Ethereum holdings by BitMine.
WEEX Crypto News, 26 January 2026
Unprecedented Bitcoin Losses Mark a Three-Year High
Bitcoin, the world’s leading cryptocurrency, has experienced a substantial realized loss of $4.5 billion, a figure not seen in the past three years. According to data from CryptoQuant, this loss indicates that the market has undergone significant pressure, reminiscent of previous correction periods. The current loss magnitude suggests parallels with a past scenario when Bitcoin’s value dropped substantially, bringing the price to around $28,000. Such a high level of realized loss reflects both the volatility inherent in the cryptocurrency market and the ongoing struggles investors face in navigating these fluctuations.
In the broader context, cryptocurrency markets have historically faced periods of rapid value shifts, driven by various external factors including regulatory changes, macroeconomic trends, and market sentiment. This latest downturn serves as a sobering reminder of the unpredictable nature and risks associated with digital currency investments.
The Historical Context of Bitcoin Losses
To understand the current scenario, it is crucial to look back at the historical trends in Bitcoin’s market behavior. The past instances where the market faced similar losses usually followed long-duration price adjustments. During these times, investors often found themselves grappling with decisions that could significantly impact their portfolios, reflecting on whether to hold onto their assets or cut their losses.
The recent $4.5 billion realized loss is indicative of a significant sell-off, contributing to the cumulative decline in Bitcoin’s market valuation. This phenomenon can often lead to a domino effect, where high levels of selling lead to further price drops, which in turn, triggers more selling — a cycle that can be challenging to break without positive market news or sentiment.
BitMine’s Strategic Increase in Ethereum Holdings
Amidst the Bitcoin turbulence, other cryptocurrencies also come into focus, offering insights into market strategies undertaken by major investors. Notably, BitMine has strategically increased its holdings of Ethereum. Within the last week, BitMine added 40,302 ETH to its portfolio, increasing their total Ethereum holdings to approximately 4.243 million ETH. This move signals a potential shift in investment focus, possibly hedging against fluctuations in Bitcoin by diversifying into Ethereum, which has its own distinct market dynamics and potential for growth.
The transparency of such strategic moves by key players in the market provides insights into the decision-making processes behind large-scale investments. By opting to accumulate Ethereum, BitMine could be betting on its unique use cases, such as smart contracts and decentralized applications, which continue to see widespread adoption.
Precious Metals and Tech Innovations
In related news, the financial landscape continues to evolve with predictions in other market sectors. Société Générale has projected that gold prices might reach $6,000 per ounce by year-end, reflecting increasing interest in traditional safe-haven assets amidst market uncertainty. Additionally, the launch of tokenization platforms, like Hearth by the U.S. listed company OFA, marks a significant development in the fintech space, potentially offering new avenues for asset management and trade.
These developments collectively highlight the fluid nature of current financial markets wherein cryptocurrencies, precious metals, and innovative digital platforms are interlinked, each influencing investor strategy and confidence.
Positive Alignment with WEEX
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FAQ
What is the significance of Bitcoin’s realized loss reaching $4.5 billion?
The realized loss reaching $4.5 billion demonstrates a substantial downturn in investor confidence and market value within Bitcoin, highlighting the volatility and high-risk nature of cryptocurrency investments.
How does this loss compare to previous Bitcoin market corrections?
This level of realized loss is akin to previous periods of market correction, such as when Bitcoin fell to around $28,000. It suggests a significant market adjustment, reflecting broader economic and market trends affecting investor behavior.
How might BitMine’s increased Ethereum holdings impact the market?
BitMine’s decision to increase its holdings in Ethereum may signal growing confidence in Ethereum’s potential and diversification away from Bitcoin, potentially influencing other investors to follow suit and thereby affecting Ethereum’s market dynamics.
What strategies might investors consider during periods of high cryptocurrency losses?
Investors might consider diversifying their portfolios, exploring other cryptocurrencies, or even traditional safe-haven assets like gold. Staying informed and cautious about market conditions can help mitigate risks associated with heightened volatility.
How does WEEX support cryptocurrency trading?
WEEX provides a secure trading platform with tools and resources designed to help traders make informed decisions, offering a user-friendly experience for both novice and experienced investors seeking to navigate the complexities of the cryptocurrency market.
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Debunking the AI Doomsday Myth: Why Establishment Inertia and the Software Wasteland Will Save Us
Editor's Note: Citrini7's cyberpunk-themed AI doomsday prophecy has sparked widespread discussion across the internet. However, this article presents a more pragmatic counter perspective. If Citrini envisions a digital tsunami instantly engulfing civilization, this author sees the resilient resistance of the human bureaucratic system, the profoundly flawed existing software ecosystem, and the long-overlooked cornerstone of heavy industry. This is a frontal clash between Silicon Valley fantasy and the iron law of reality, reminding us that the singularity may come, but it will never happen overnight.
The following is the original content:
Renowned market commentator Citrini7 recently published a captivating and widely circulated AI doomsday novel. While he acknowledges that the probability of some scenes occurring is extremely low, as someone who has witnessed multiple economic collapse prophecies, I want to challenge his views and present a more deterministic and optimistic future.
In 2007, people thought that against the backdrop of "peak oil," the United States' geopolitical status had come to an end; in 2008, they believed the dollar system was on the brink of collapse; in 2014, everyone thought AMD and NVIDIA were done for. Then ChatGPT emerged, and people thought Google was toast... Yet every time, existing institutions with deep-rooted inertia have proven to be far more resilient than onlookers imagined.
When Citrini talks about the fear of institutional turnover and rapid workforce displacement, he writes, "Even in fields we think rely on interpersonal relationships, cracks are showing. Take the real estate industry, where buyers have tolerated 5%-6% commissions for decades due to the information asymmetry between brokers and consumers..."
Seeing this, I couldn't help but chuckle. People have been proclaiming the "death of real estate agents" for 20 years now! This hardly requires any superintelligence; with Zillow, Redfin, or Opendoor, it's enough. But this example precisely proves the opposite of Citrini's view: although this workforce has long been deemed obsolete in the eyes of most, due to market inertia and regulatory capture, real estate agents' vitality is more tenacious than anyone's expectations a decade ago.
A few months ago, I just bought a house. The transaction process mandated that we hire a real estate agent, with lofty justifications. My buyer's agent made about $50,000 in this transaction, while his actual work — filling out forms and coordinating between multiple parties — amounted to no more than 10 hours, something I could have easily handled myself. The market will eventually move towards efficiency, providing fair pricing for labor, but this will be a long process.
I deeply understand the ways of inertia and change management: I once founded and sold a company whose core business was driving insurance brokerages from "manual service" to "software-driven." The iron rule I learned is: human societies in the real world are extremely complex, and things always take longer than you imagine — even when you account for this rule. This doesn't mean that the world won't undergo drastic changes, but rather that change will be more gradual, allowing us time to respond and adapt.
Recently, the software sector has seen a downturn as investors worry about the lack of moats in the backend systems of companies like Monday, Salesforce, Asana, making them easily replicable. Citrini and others believe that AI programming heralds the end of SaaS companies: one, products become homogenized, with zero profits, and two, jobs disappear.
But everyone overlooks one thing: the current state of these software products is simply terrible.
I'm qualified to say this because I've spent hundreds of thousands of dollars on Salesforce and Monday. Indeed, AI can enable competitors to replicate these products, but more importantly, AI can enable competitors to build better products. Stock price declines are not surprising: an industry relying on long-term lock-ins, lacking competitiveness, and filled with low-quality legacy incumbents is finally facing competition again.
From a broader perspective, almost all existing software is garbage, which is an undeniable fact. Every tool I've paid for is riddled with bugs; some software is so bad that I can't even pay for it (I've been unable to use Citibank's online transfer for the past three years); most web apps can't even get mobile and desktop responsiveness right; not a single product can fully deliver what you want. Silicon Valley darlings like Stripe and Linear only garner massive followings because they are not as disgustingly unusable as their competitors. If you ask a seasoned engineer, "Show me a truly perfect piece of software," all you'll get is prolonged silence and blank stares.
Here lies a profound truth: even as we approach a "software singularity," the human demand for software labor is nearly infinite. It's well known that the final few percentage points of perfection often require the most work. By this standard, almost every software product has at least a 100x improvement in complexity and features before reaching demand saturation.
I believe that most commentators who claim that the software industry is on the brink of extinction lack an intuitive understanding of software development. The software industry has been around for 50 years, and despite tremendous progress, it is always in a state of "not enough." As a programmer in 2020, my productivity matches that of hundreds of people in 1970, which is incredibly impressive leverage. However, there is still significant room for improvement. People underestimate the "Jevons Paradox": Efficiency improvements often lead to explosive growth in overall demand.
This does not mean that software engineering is an invincible job, but the industry's ability to absorb labor and its inertia far exceed imagination. The saturation process will be very slow, giving us enough time to adapt.
Of course, labor reallocation is inevitable, such as in the driving sector. As Citrini pointed out, many white-collar jobs will experience disruptions. For positions like real estate brokers that have long lost tangible value and rely solely on momentum for income, AI may be the final straw.
But our lifesaver lies in the fact that the United States has almost infinite potential and demand for reindustrialization. You may have heard of "reshoring," but it goes far beyond that. We have essentially lost the ability to manufacture the core building blocks of modern life: batteries, motors, small-scale semiconductors—the entire electricity supply chain is almost entirely dependent on overseas sources. What if there is a military conflict? What's even worse, did you know that China produces 90% of the world's synthetic ammonia? Once the supply is cut off, we can't even produce fertilizer and will face famine.
As long as you look to the physical world, you will find endless job opportunities that will benefit the country, create employment, and build essential infrastructure, all of which can receive bipartisan political support.
We have seen the economic and political winds shifting in this direction—discussions on reshoring, deep tech, and "American vitality." My prediction is that when AI impacts the white-collar sector, the path of least political resistance will be to fund large-scale reindustrialization, absorbing labor through a "giant employment project." Fortunately, the physical world does not have a "singularity"; it is constrained by friction.
We will rebuild bridges and roads. People will find that seeing tangible labor results is more fulfilling than spinning in the digital abstract world. The Salesforce senior product manager who lost a $180,000 salary may find a new job at the "California Seawater Desalination Plant" to end the 25-year drought. These facilities not only need to be built but also pursued with excellence and require long-term maintenance. As long as we are willing, the "Jevons Paradox" also applies to the physical world.
The goal of large-scale industrial engineering is abundance. The United States will once again achieve self-sufficiency, enabling large-scale, low-cost production. Moving beyond material scarcity is crucial: in the long run, if we do indeed lose a significant portion of white-collar jobs to AI, we must be able to maintain a high quality of life for the public. And as AI drives profit margins to zero, consumer goods will become extremely affordable, automatically fulfilling this objective.
My view is that different sectors of the economy will "take off" at different speeds, and the transformation in almost all areas will be slower than Citrini anticipates. To be clear, I am extremely bullish on AI and foresee a day when my own labor will be obsolete. But this will take time, and time gives us the opportunity to devise sound strategies.
At this point, preventing the kind of market collapse Citrini imagines is actually not difficult. The U.S. government's performance during the pandemic has demonstrated its proactive and decisive crisis response. If necessary, massive stimulus policies will quickly intervene. Although I am somewhat displeased by its inefficiency, that is not the focus. The focus is on safeguarding material prosperity in people's lives—a universal well-being that gives legitimacy to a nation and upholds the social contract, rather than stubbornly adhering to past accounting metrics or economic dogma.
If we can maintain sharpness and responsiveness in this slow but sure technological transformation, we will eventually emerge unscathed.
Source: Original Post Link

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