Glassnode: Bitcoin is further entering the capitulation phase, and long-term demand has yet to emerge

Glassnode released a market weekly report stating that Bitcoin continues to exhibit characteristics of a late-stage adjustment, with recent buyers suffering significant losses and realized losses remaining high, while several major sources of demand have weakened considerably.

The drop in Bitcoin's price to around $60,000 triggered a significant deleveraging event, clearing a large number of speculative positions from the market. While this helps reset leverage levels, spot demand has yet to show a substantial recovery. The options market remains defensive, with implied volatility staying high, strong demand for downside protection, and traders' positions concentrated around the current spot levels. Coupled with a decline in institutional participation and a slowdown in corporate bond accumulation, these data indicate that risk appetite remains subdued.

Overall, the market seems to be further entering a phase of capitulation. Although leverage has essentially been reset and valuation metrics have reached historical lows, the demand response typically associated with long-term market lows has yet to materialize.