Crypto Market Enters Late-Stage Bottoming Phase Amid Ongoing Long-Term Holder Capitulation

The crypto market has entered its late-stage bottoming phase according to recent data from Glassnode. This is indicated by several key metrics, including Bitcoin's price remaining below the Realized Price and Short-Term Holder cost basis for five consecutive months.

Long-term holders have become a dominant bearish force in the market, with their proportion of realized losses rising to 43% over the past week. This has led to a concentrated exit of these investors, who mostly entered near the cycle peak and have seen their holding conviction erode due to deep retracement.

The Entity-Adjusted Long-Term Holder Realized Loss indicator has hit a daily peak of approximately $280 million, the highest since December 2022. This suggests that long-term holder capitulation is ongoing and that selling pressure from this group remains high.