Holm was rated a $12 outsider by some international betting outlets but her victory at UFC 193 at Etihad Stadium moved her to a perfect 10-0 in MMA, while Rousey fell to 12-1.
Pundits have moved quickly to suggest it was the biggest upset in UFC history and it's hard to argue that notion.
Rousey has a growing film career with appearances in 'The Expendables 3' and 'Furious 7' but a rematch with Holm seems inevitable.
"The rematch makes a lot of sense. I think the rematch is what people would want to see," UFC president Dana White said yesterday.
Nothing is confirmed but in July, 2016, UFC 200 will take place and the promotion will want to stack the card with their biggest names and Rousey is one of them.
The 28-year-old, who won a bronze medal in Judo at the 2008 Olympics in Beijing, is a pioneer in women's MMA and her ability to blur the lines between the MMA Bubble and mainstream media is unique.
Average sports fans may not have known a lot about MMA but they knew Rousey and that says something about her popularity, which has spread like wildfire in recent years.
The result won't be terminal for her career but there's no denying it will hurt her 'brand' as she had developed a reputation for being the most dangerous woman on the planet. That illusion has been shattered.
Few could knowingly predict the next move for Rousey but there are grumblings behind the scenes after her mother recently voiced her dislike for her striking coach Edmond Tarverdyan.
Tarverdyan has also experienced financial problems of late, which could also have been another spanner in Rousey's preparation for yesterday's bout.
Speculation has grown that Rousey may need a new voice in her corner and this result could lead her to a career crossroad.
Going back to her strength - judo - would also help her in another battle with Holm, rather than trying to match it on the feet with a highly-qualified striker.
Holm, who executed her gameplan to perfection in Melbourne, knows a date with Rousey looms in the future.
"With a champion like Ronda who has gone out of her way - above and beyond - to do great things, absolutely, she deserves a rematch. I don't look at this belt and think I've made it. I think I still have things that I need to do," the new champion said.