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CryptoQuant: The Bitcoin market has gone through one of the largest capitulation events
According to their estimates, sharp spikes in realized losses have historically been accompanied by short-term price rebounds, while at the same time signaling a transition of the market into a phase of deeper correction. Such rallies often occur during a bearish trend and do not necessarily indicate the formation of a final bottom.
“In previous cycles, a solid market base was formed after a period of consolidation below the realized price — the average acquisition cost of coins held by current owners. At the moment, this indicator stands at around $55,000,” CryptoQuant explained.
Analysts note that the current capitulation reflects panic among traders and forced position closures amid economic pressure, which may be accompanied by the market entering a more prolonged bearish phase.
According to experts, forming a sustainable recovery will require time and confirmation from other indicators — primarily steady purchases by large investors and improvements in miners’ financial conditions.
CryptoQuant emphasized the importance of monitoring the activity of large holders and institutional investors, as their actions can signal potential bottom points and influence short-term market volatility.
Earlier, analysts at the investment firm QCP Capital stated that the dynamics of Bitcoin and other major cryptocurrencies are becoming increasingly dependent on the state of the global economy.
See also: "The first signs of stabilization have appeared in the cryptocurrency market"
