Bitcoin Enters Capitulation Phase as Demand and Institutional Buying Weaken, Glassnode Says
Bitcoin fell into bear-market territory after its May rebound failed, as a stronger dollar and persistently high U.S. Treasury yields weighed on demand for risk assets. Onchain analytics firm Glassnode said widespread losses among short-term holders and the retreat of institutional capital indicate that the market is moving from a routine correction into a capitulation phase. Whether fresh buyers emerge will determine if a bottom can form.
Glassnode said on June 10, 2026, that Bitcoin had fallen 7.5% in one week to $61,700, after touching an intraday low of $59,000. More than 95% of short-term holders were at a loss, with average unrealized losses of 17% to 19%. Daily purchases by corporate treasuries also fell from more than $500 million in April and May to nearly zero in June, while U.S. spot ETFs recorded outflows and institutional demand had yet to recover.
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The history behind this eventGlassnode Says Bitcoin Has Spent Five Months at Deep Discount, Building a Bottom
On-chain analytics firm Glassnode has long tracked cryptocurrency capital flows and holders’ cost bases. The market entered a correction after Bitcoin’s previous peak. Key cost-basis levels matter because they serve as psychological dividing lines between bull and bear markets. When prices remain below holders’ average costs for an extended period, the market enters a deep bottom-building phase, providing investors seeking medium- to long-term entry points with a key gauge for whether to buy the dip.
According to Glassnode’s latest weekly report, published in July 2026, Bitcoin has traded below several key cost-basis support levels for five consecutive months, leaving it at a deep discount. Profit-taking by long-term holders and persistently weak institutional demand through spot ETFs have weighed on spot prices, although the derivatives market is showing signs of de-risking. The market will now watch for three major reversal signals, including easing selling pressure and a return of institutional capital.
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