FTX Collapse Has Led to Fourth-largest Investor Capitulation in History

According to experts at analyst firm Glassnode, the collapse of cryptocurrency derivatives exchange FTX has triggered a capitulation of Bitcoin investors, comparable to the darkest episodes of previous bear markets.

According to them, November has seen the fourth largest capitulation in history. Seven-day average realized losses have reached $10.16 billion, four times the December 2018 figure and 2.2 times the March 2020 figure.

Realized losses expressed in Bitcoin (smoothed by the seven-day moving average) amounted to 521,000 BTC.

The company’s experts have said:

“Comparing the current Cumulative Net Realized Loss to the COVID and LUNA Crash, with 44% and 39% price decline respectively, the market has shown a larger degree of strength during the recent capitulation with only 26% correction.”

The BTC price has remained below the realized price for the past 4.5 months. The asset’s falling price has contributed to the shift of market participants from distribution to accumulation.