Capitulation Is Painful, but It Creates Asymmetry

[lingriiddd]

Data from Glassnode confirms that capital netflows into Bitcoin turned negative in late December, ending a two-year stretch of steady inflows. Even more notable, long-term holders are now realizing losses at a faster pace than earlier in 2024—a classic sign of investor fatigue and capitulation.

From an opportunity perspective, this phase is where asymmetry begins to emerge. When the most resilient holders start selling under pressure, downside risk often compresses while upside optionality grows. For disciplined investors, periods of capitulation tend to be less about timing bottoms perfectly and more about positioning before sentiment inevitably resets.

[cryptohog]

negative netflows per Glassnode feels ugly short term but historically thats where asymmetry shows up