Recent events in the cryptocurrency market signal capitulation among short-term holders, which may influence future market trends.
The Capitulation of Short-Term Holders
In the cryptocurrency market, over 40,000 BTC were sent to exchanges at a loss by short-term holders, as confirmed by analyst Maartunn. This surge mirrors a similar spike observed on July 25, 2025, indicating potential market distress.
The Role of Long-Term Holders
Historical data suggests that long-term holders often step in during such moments, which could indicate a price recovery opportunity. For instance, in April 2025, they absorbed around 500,000 BTC during market stress.
Influence of Economic Factors on the Market
The STH MVRV ratio has fallen below 0.82, which according to Glassnode precedes market recovery. This may correlate with changes in economic policy, such as the Federal Reserve's rate cuts, which could also pressure short-term traders.
The capitulation of short-term holders in the cryptocurrency market could signify the beginning of a recovery phase, if long-term holders continue to absorb supply.
