Viewpoint: Signs of 'Capitulation Selling' at Bitcoin Bear Market Bottom Not Yet Apparent
On June 2, Glassnode reported that the price of Bitcoin has currently fallen to $69,500, with long-term holders experiencing a relative unrealized loss of 15.5%. This means that for every $1 of Bitcoin held, long-term holders are currently facing an average unrealized loss of about $0.155 (15.5 cents). Historically, during the extreme bottom phases of market cycles, this metric has exceeded 50%, indicating that for every $1 of holdings, there was more than $0.5 of unrealized loss. Data shows that there is indeed some pressure in the current market, but the level of pain experienced by long-term holders is still far from the levels typically associated with cyclical bottoms in history. In other words, based on the losses of long-term holders, the market has not yet shown the widespread and deep 'capitulation selling' signs seen at the bottoms of past bear markets.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Nasdaq Drops Over 300 Points After OpenAI's Revenue Comes In $20 Billion Short
BUZZ-Revolution Medicines stock drops due to concerns over pancreatic cancer drug data
On October 8, Revolution Medicines (RVMD.O) shares fell 8.1% in afternoon trading to $185.91. RBC Capital Markets stated that the share price decline appeared to be driven by the latest U.S. Food and Drug Administration (FDA) review documents regarding the company's pancreatic cancer drug Rasonque, particularly the disclosure of objective response rate data for specific RAS mutation subgroups. RBC pointed out that overall survival, rather than objective response rate, is a more meaningful indicator of efficacy, and that the sell-off overlooked Rasonque's broad activity across a variety of RAS mutation subgroups. RBC stated: "While we acknowledge that today's share price decline takes place against the backdrop of overall weakness in the biotech sector, we still believe that the market's reaction to the FDA review documents is an overreaction, given that the drug was approved on the basis of highly clinically meaningful efficacy and has received positive feedback from physicians." Including intraday fluctuations, the stock has more than doubled year-to-date. (Note: For the convenience of non-English speakers, Reuters has automatically translated its reports into several other languages. Automated translations may be inaccurate or lack necessary context; Reuters does not guarantee the accuracy of these automated translations and provides them only for reader convenience. Reuters does not accept liability for any damage or loss arising from the use of automated translation features.)
BUZZ - Reports suggest Starbucks had discussed a deal, Chipotle shares rise
Latest Updates October 8 - Chipotle Mexican Grill shares (CMG.N) surged by as much as 8.55% to $33.40, while Starbucks (SBUX.O) shares once dropped 6.66% to $87.35. The Financial Times, citing insiders, reported that Starbucks (SBUX) had considered acquiring Chipotle (link). The coffee giant's stock has fallen to its lowest point since March. According to the report, the progress of the acquisition plan remains unclear; both Starbucks and Chipotle did not immediately respond to Reuters' requests for comment. If the deal goes through, CEO Brian Niccol would return to lead the Mexican grill chain he ran before joining the coffee giant two years ago. "For SBUX, we think investors would view this as a distraction for management's time and energy—after all, there is still much work to be done to revive the Starbucks brand, particularly concerning the fundamentals of same-store sales in North America, as the company gradually exhausts easily achievable growth points through 2027 and beyond," said RBC Capital Markets analyst Logan Reich. According to data from the London Stock Exchange Group (LSEG), CMG has a market capitalization of about $39 billions, while SBUX is valued at $107 billions. As of the close of the last trading day, SBUX has risen about 11% year-to-date, while CMG has fallen by 17%. (For the convenience of non-English speakers, Reuters has automated the translation of its reports into several other languages. As automated translations may be inaccurate or lack contextual nuances, Reuters does not guarantee the accuracy of translated texts, which are provided solely for reader convenience. Reuters accepts no liability for any loss or damage arising from the use of automated translations.)
Investment Bank TD Cowen Revises Price Targets for Bitcoin (BTC)! Bear or Bull? Here are the Details
Crypto prices
More
