CryptoQuant reports short-term Bitcoin holders have capitulated.
- CryptoQuant reported the capitulation of short-term Bitcoin holders.
- According to their data, SOPR and MVRV indicators are at minimum levels.
- The market structure is consistent with a late correction phase, experts noted.
Bitcoin is entering one of the most serious short-term capitulation phases of this cycle, according to analysts at CryptoQuant.
According to their data, the STH-SOPR index has been below 1 for several weeks and currently stands at 0.97. This indicates that most coins are being sold at a loss. Experts noted that in past cycles, this situation has always been a sign of panic selling.
Analysts also noted the STH-MVRV indicator, which fell significantly below 1. This indicates that almost all participants who recently bought Bitcoin are in the red.
Experts noted that the panic was further confirmed by the transfer of over 65,000 BTC to centralized exchanges, with losses being recorded. Analysts believe this move signifies not just pessimism but also an active desire to get rid of the asset—a sign of late capitulation.
CryptoQuant added that such dynamics usually precede a recovery phase, although they don't guarantee a quick reversal. After weak hands are exhausted, selling pressure gradually eases, creating the conditions for growth.
“Volatility may persist, but the purge of weak players has already begun—and historically, this process has marked the late stages of a correction, not its beginning,” the analysts concluded.
As a reminder, CryptoQuant previously stated that Bitcoin's correction could continue to $87,500.
Source: cryptonews.net
