Bitcoin Faces Longest Capitulation Since FTX Collapse, Analysts Warn

On‑chain analytics firm Glassnode reports that Bitcoin’s 45‑metric heatmap has been in a prolonged blue (capitulation) phase, the longest since the end of the 2022 bear market and the FTX collapse. The platform notes that daily active addresses and entity‑adjusted transfer volumes have moved above their upper statistical bands, indicating stronger network engagement despite recent capital outflows stabilising after a Coldcard hardware‑wallet bug.

Separately, Lookonchain highlighted a newly created wallet that deposited 2.44 million USDC into Hyperliquid to open a 40× short on 1,600 BTC (about $102.6 million) with a liquidation price near $64,889. This large leveraged bet, combined with deep‑fear sentiment and sell walls between $64k‑$65k, suggests a potential bear‑trap that could trigger a liquidation cascade if Bitcoin falls below that range.