Analysis: Despite the market warming up, some investors still choose to cut losses and exit, and the market may have already completed a relatively thorough "clearing."
On January 6th, CryptoQuant analyst Darkfost stated, “Although Bitcoin has recently rebounded, realized losses still dominate. Based on the weekly average of realized gains and losses: realized profits amount to $312 million; realized losses amount to $511 million. Despite the market recovery, some investors are still choosing to cut losses and exit, clearing their positions at a loss. Historically, these capitulation phases often mark the end of a correction cycle. However, we still need to pay attention to the intensity of this capitulation: its level is approaching that of the previous bear market, which may indicate that the market has completed a relatively thorough ‘clearing,’ creating conditions for a healthier restart of the rally.”
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Analysis: Despite the market warming up, some investors still choose to cut losses and exit, and the market may have already completed a relatively thorough "clearing."
On January 6th, CryptoQuant analyst Darkfost stated, “Although Bitcoin has recently rebounded, realized losses still dominate. Based on the weekly average of realized gains and losses: realized profits amount to $312 million; realized losses amount to $511 million. Despite the market recovery, some investors are still choosing to cut losses and exit, clearing their positions at a loss. Historically, these capitulation phases often mark the end of a correction cycle. However, we still need to pay attention to the intensity of this capitulation: its level is approaching that of the previous bear market, which may indicate that the market has completed a relatively thorough ‘clearing,’ creating conditions for a healthier restart of the rally.”