Bitcoin Market Sentiment Hits Lowest Point Since FTX Collapse
Bitcoin has entered its longest period of capitulation since the FTX exchange bankruptcy in November 2022, according to on-chain analytics firm Glassnode.
The company's proprietary market sentiment indicator, the Bitcoin Cycle Position Heatmap, is currently showing a deep blue territory, reflecting a downturn comparable to the period immediately following the FTX collapse.
Rafael Schultze-Kraft, co-founder of Glassnode, explained that 'the current market has entered its coldest phase since the FTX incident, but it has not reached the extreme levels seen at past market bottoms.'
Despite a prolonged capitulation phase, some on-chain indicators are showing signs of recovery. Daily active addresses and entity-adjusted transfer volumes have increased, indicating strengthening economic activity within the Bitcoin network.