According to Glassnode, the Ethereum DeFi market is experiencing a massive deleveraging. The Ethereum investor base is locking in historically enormous realized losses as a result of its deeply submerged spot positions at the moment as almost $124 billion in funds have been flushed out in just six weeks.
In a piece of positive news, the Ethereum Sepolia Testnet Merge move is scheduled to go live around July 6 at the current hashrate. If the hashrate increases faster than anticipated, Ethereum developers warn that this may occur much sooner than anticipated.
According to Glassnode, when it comes to establishing a bear market floor for Bitcoin, all models and historical examples are likely to be put to the test under the current macroeconomic context. The market is already at a highly implausible level based on the current positioning of Bitcoin prices in relation to historical floor models, with only 0.2 percent of trading days being in similar circumstances.
All previous bear market bottoms have occurred at percentage supplies of profit that are between 40 and 45 percent. In other words, the portion of the coin supply underwater was greater than 50%. The market did reach just below 50% supply in profit during the sell-off to $17,600, leading to a sizable capitulation and coin redistribution event.
In June, investors who mostly invested in the 2020–21 cycle caused a long overdue but ostensibly conventional capitulation among long-term holders.
The Long-Term Holder (LTH) supply decreased throughout the month of June by roughly 181.8k BTC, bringing the overall balance back to levels from September 2021. This only amounts to 7.16 percent of the supply that was increased between March and October 2021, though. If this indicator continues to decline, it could indicate further sell-side pressure and a possible decline in LTH conviction. But a slowing or even a rebound would be extremely opposed to that idea.
Nearly all Bitcoin macro indicators, from technical to on-chain, are at record lows, coinciding with the creation of the bear market floor in past cycles. Many are trading at levels where the historical history at comparable levels is only one or two percentage points.
There are numerous floor formation signals flashing for Bitcoin right now, but when?
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