According to Glassnode, the Bitcoin market has survived two massive capitulation events in 2022, both with the greatest BTC transfer volume in loss since 2011.
2022 has seen #Bitcoin markets weather two enormous capitulation events, both with the largest $BTC transfer volume in loss since 2011.— glassnode (@glassnode) July 17, 2022
When LUNA collapsed, the total transfer volume in loss was 538k $BTC.
This was followed by 480k $BTC as the market traded below the 2017 ATH. pic.twitter.com/oKjBm4JgjE
The on-chain analytics firm reports the two events as the LUNA collapse and the market dump, where Bitcoin traded below its 2017 ATH. It noted the total transfer volume in loss was 538,000 BTC and 480,000 BTC for the two events, respectively.
CryptoAnalyst and economist Alex Kruger share this same opinion when he indicated that Bitcoin might have capitulated when its price dipped near $17,500 in mid-June.
The analyst underlined the fact that trading volumes reached the highest pitch at this time, indicating capitulation, which produces significant bottoms. "As a general rule, trading volume is the highest when markets capitulate, and such capitulation creates major bottoms," he stated.
Such price bottoms might be necessary for the market to initiate a reversal and trend higher.
Bitcoin price recovers to $22K
The cryptocurrency market held out hope that the contagion and shakeout over the previous few weeks might be about to come to an end as Bitcoin surged above $22,000 on Monday, reaching its highest level in more than a month.
At the time of publication, the price of the biggest cryptocurrency in the world was up 4.14% to $22,053. The price of Bitcoin reached intraday highs of $22,503, the highest level since June 16.
A rise in stock markets that traded higher contributed to the euphoric mood. Bitcoin in particular has been closely correlated with trading on the stock market. A gain in stocks frequently improves market sentiment for cryptocurrencies.
Analysts are still evaluating whether the recent devastation, which has seen Bitcoin lose nearly 67% of its value, might be nearing its conclusion.