Bitcoin’s downward trajectory continues, with its price slipping below $89,000, marking an 8.5% loss over the past week. This extended decline has raised concerns among investors about whether the bottom is finally in.
Recent market behavior suggests that significant capitulation is taking place, which some analysts believe could indicate a turning point.
Massive Bitcoin Sell-Off: Is The Bottom In?
A key observation has emerged from a CryptoQuant analyst known as caueconomy, who recently highlighted what he describes as the “largest Bitcoin capitulation” event of 2025.
In a post titled “The biggest Bitcoin capitulation since August 2024 – bottom is in?,” caueconomy noted that more than 79,000 BTCs were sold at a loss within a single day, amounting to roughly $1.7 billion.
This sell-off, according to caueconomy, is reminiscent of the capitulation event in August 2024, when Japan’s interest rate hikes triggered widespread deleveraging across global markets.
Caueconomy’s analysis points to a critical juncture for Bitcoin. He observed that the previous capitulation event in August 2024 marked a short-term bottom, as the market stabilized and eventually rallied to $100,000 by December.
While he acknowledges that it’s impossible to guarantee the current price won’t drop further, the scale of this capitulation presents a potential opportunity for long-term investors.
The analyst’s insights offer a mixed picture: although the market may face continued pressure, the extent of recent selling activity could indicate that many “weak hands” have been shaken out.
This process, while painful in the short term, often sets the stage for a more solid price foundation, enabling a recovery down the line.
The biggest Bitcoin capitulation since August 2024 – bottom is in?
“A total of more than US$ 1.7 billion in coins were distributed at a loss on the 25th, being the biggest capitulation since August 5th.” – By @caueconomy
Read more ⤵️https://t.co/gclTPwRqgr pic.twitter.com/sxmF2tw79r
— CryptoQuant.com (@cryptoquant_com) February 26, 2025
Ongoing Bearish Indicators Persist
Despite these observations, other analysts remain cautious about calling a market bottom. In another analysis shared on CryptoQuant’s platform, an analyst known as Nino highlighted several bearish indicators that have surfaced in recent weeks.
Negative funding rates on various derivatives exchanges, combined with a negative Coinbase Premium, suggest a continued dominance of short positions and heightened selling pressure in the spot market.
Nino explained that when funding rates are negative, futures prices are trading below spot prices, reflecting an increase in short interest. Simultaneously, a negative Coinbase Premium indicates that selling on Coinbase has been substantial enough to push its spot price below that of other exchanges.
The CryptoQuant analyst added:
These figures together highlight a strong bearish sentiment among market participants, with short-selling pressure outpacing that of long positions in this recent downturn. All of these findings are strictly based on what can be observed from the chart, offering a glimpse into the overall market mood.
Featured image created with DALL-E, Chart from TradingView
Samuel Edyme
Meet Samuel Edyme, Nickname – HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others.
Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis.
Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics.
When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…)
Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life.
In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps.
Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think’s probably unfeasible, I’ve done already a hundredfold.”
PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp.
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