Bitcoin is nearing capitulation as short-term holders experience significant losses, with the short-term holder (STH) MVRV ratio dropping to 0.82. This indicates that recent buyers are, on average, holding unrealized losses of about 18%. Historically, such low MVRV levels suggest market stress and potential capitulation, closely mirroring previous lows that preceded market recoveries. Notably, long-term holders have accumulated around 500,000 BTC since February, while short-term holders have sold over 300,000 BTC, reflecting a trend of accumulation by strong hands amidst market volatility. This situation signals a potential shift in market dynamics, where weak hands may soon capitulate as they face mounting losses, while long-term holders increase their positions.

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