Bitcoin Experiences Longest Capitulation Since FTX Collapse
Vexoda Newsroom
Glassnode reports that Bitcoin's price-metric basket is in its coldest phase since the collapse of FTX, signaling a prolonged bear market environment.
On August 5, 2026, onchain analytics platform Glassnode announced that its aggregate Bitcoin (BTC) price cycle tool had entered its longest 'capitulation' period since the FTX exchange's dramatic collapse in late 2022. This development suggests a prolonged bear market environment for BTC.
Glassnode’s co-founder, Rafael Schultze-Kraft, created an ‘Bitcoin Cycle Position Heatmap’ that combines data from 45 different metrics to provide a comprehensive view of the overall health of Bitcoin's price cycle. According to this tool, all 45 tracked indicators are currently in their longest 'capitulation' phase since FTX’s downfall.
While the current state is concerning for traders and investors, it's important to note that these readings have yet to reach levels seen during previous bear market bottoms. Schultze-Kraft explained that a more severe downturn could still be ahead: ‘Today it sits in its coldest stretch since FTX: late in the bear, but not yet the unanimous deep blue that previously marked a floor.’
Despite this pessimistic outlook, Glassnode’s latest Market Pulse report highlighted some positive signs. On-chain activity has strengthened significantly, with daily active addresses and entity-adjusted transfer volumes exceeding their upper statistical bands. This indicates increased network engagement and economic throughput.
The market reaction to the Coldcard hardware wallet hack also showed resilience among investors. The uptick in onchain transactions of 1 BTC or less was compared to post-FTX levels, suggesting that while some knee-jerk reactions occurred initially, overall capital outflows remained stable over time.
This prolonged bearish phase could have broader implications for the cryptocurrency market as a whole. Traders and investors should remain vigilant about potential further declines in price metrics, which might signal deeper capitulation or a more severe downturn similar to what was seen during FTX’s collapse.
Going forward, traders should closely monitor key indicators such as dormancy rates among Bitcoin holders, as well as any new developments related to Coldcard hacks and broader market sentiment.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.