Glassnode: there is a positive thing about capitulation

The situation in the cryptocurrency market is getting closer to critical. Capitulation affects both: mining and investments. Miners suffer from a whole set of problems.

Source: Twitter

In the digital currency mining sphere, experts have noticed a very troubling sign: bitcoin’s hashrate has begun to decline. As a result, the speed of finding a block increased to 11 minutes.

Source: Twitter

Nevertheless, Glassnode’s statement looks very optimistic:

A large-scale capitulation is an event that becomes a trigger for a market reversal from a bearish trend to a bullish one. It happens after participants realize the global size of the losses.

In other words, when the situation reaches the bottom, a driver appears, which can give a new spin to the positive developments. Right now, the market is pessimistic, and the collapse of FTX strongly aggravated the situation. Perhaps the news background will improve in the future, and there will be an unexpected trigger that can start the growth.