Markets have been consolidating just above those cycle lows since the FTX meltdown in early November. Additionally, there has been a slight uptick in on-chain activity but nothing substantial enough to catalyze larger price movements just yet.
Glassnode delved into the magnitude of losses realized by all market participants during the massive deleveraging event.
These flushouts are nothing new in crypto markets, and the forced removal of over-leveraged positions is healthier for price discovery in the longer term. High leverage is generally unsustainable for any asset class.
In the wake of one of the largest deleveraging events in digital asset history, the #Bitcoin Realized Cap has declined such that all capital inflows since May 2021 have now been flushed out, signaling a capital reset is underway.
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