The Premier League newboys had hoped to make the striker their 10th signing of the close-season but Holloway admitted that a deal now looks unlikely.
Bent found his opportunities at Aston Villa limited under Paul Lambert last season and has been linked with a host of clubs.
Palace wanted to sign the 29-year-old on a season-long loan, whereas Fulham look set to complete a permanent deal for the England international.
Speaking on BBC London 94.9 Holloway said: "Fulham could wait a lot longer than we could so we've tried to force it, they've stepped in, took our deal.
"I was told last night (Thursday) he was coming to us. I was told this morning he was coming to us. It's life.
"They (Fulham) are bigger sharks than us. My chairman's going to have to get used to that."
Fulham would be Bent's third London club, having already played for Charlton Athletic and Tottenham.
