Bitcoin's Weak Hands Are Folding, But Is One Final Flush Still Ahead?

Bitcoin's price has been hovering around $64,500 as investors remain cautious following the Federal Reserve's hawkish stance and ongoing US-Iran tensions. Despite this, a key on-chain metric has fallen by 62% in the past nine months.

Short-term Bitcoin holders (STHs) are realizing losses, with cumulative losses becoming increasingly significant. According to crypto analyst Darkfost, STHs' realized capitalization has declined by nearly 62% from its October peak. This reflects typical behavior seen among short-term holders during market corrections, including extreme capitulation and continued accumulation at lower prices.

The findings also reveal that previous bear markets recorded drawdowns of 70% to 75% in this metric. While the current levels are approaching that range, it remains uncertain whether the market will continue consolidating or enter a final correction phase.